Do's and Dont's about House Repossession

Do your best to avoid stigma of repossession. Money comes back in life but the dent on one’s prestige does not go. If the worst happens and repossession takes place, remember that you are still liable for ongoing costs on the property. Mortgage interest, legal fees, estate agents fees etc, all accrue until sale by the lender.

When the property is sold, the sale proceeds will go to clearing the lenders mortgage account. Any surplus funds will be repaid to you. However, any shortfall is still your responsibility and lenders have up to 12 years to recover (as Birmingham falls in England Law) this from you although it is only 5 years in Scotland.

You do not get rid of the debt just be the property being repossessed.  Take measures to ensure that it sold quickly and for the best price so that the lender and his bailiffs stop chasing you.

The Council of Mortgage Lenders have provided a code which lenders must adhere to in order to be able to claim any shortfall from you. A recorded delivery letter must be served within 28 days of re-sale.

Lenders are under a duty to realise the full amount for the property - however, because they also have a desire to clear their account / arrears as soon as possible, there is a risk that the property will be sold under value and in mist cases it is sold in auctions. This will be at your expense and the value lost in the property will be your loss and the lender can recover that from you.

Make sure of the following things if you face repossession and do not want to sell your property privately:

1. Do not trash the property or leave it in a messy / unclean state. Treat the property as if you were trying to sell it yourself for the best price. Every extra penny you get will be to your future benefit. Any money lost in repair will eventually go from your pocket.
2. Make an enquiry with the lender to confirm the date that their estate agent was instructed (if you think the agent is unsuitable - for example they are not local- or they specialize in a different sector of the property market, tell the lender in writing)
3. Make sure a 'For Sale' sign is put up, and if the agent has a web site - that the property is listed. The average time for a property to sell with an agent is 2-6 months and most charge 1-3% commission.

We can save your house, you may not have to sell it

You need to act quickly, so that our team of experts, at Save My Cave, can analyze your situation and suggest the most optimum solution to stop repossession of your house.
You can call FREE on 0800-43-22-999, to speak with our advisor. Or fill out 2 minutes Consultation Form to provide us information about your situation.