Without immediate action, mortgage arrears can very quickly descend into full-blown repossession proceedings and the nightmare of losing your home – and any equity you have in it – becomes a reality.
The good news is that help is at hand. By remortgaging your house with an experienced broker you can stop repossession proceedings in their tracks and get on with your life with a new mortgage that suits you.
Read on to see how these specialist companies can help you no matter where you are on the repossession ladder.
1. MORTGAGE ARREARS
Missing even just one mortgage payment can cause enormous damage to your credit rating and, unless you can pay off the outstanding amount immediately, can quickly become a real problem.
A missed payment is logged as mortgage arrears – if that payment isn't settled immediately it rolls on to the next month meaning that, until the outstanding amount is settled, you are registered as being in mortgage arrears.
2. REPOSSESSION PROCEEDINGS
Missing several payments or having longstanding mortgage arrears could lead to your mortgage lender starting repossession proceedings.
The first step would usually for the mortgage company to issue a claim form citing the time and date that you would be required to appear at county court.
This can often be a confusing document with a great deal of information including detail of your account, description of the property, details of any previous attempts to repossess the property and details of your arrears.
The claim form is accompanied by a form called an N11M “Form Of Defence”; it allows you to explain your circumstances and what you will do to resolve your mortgage arrears and has to be completed within 14 days.
3. COUNTY COURT HEARING
Even if you have replied to the claim form you must attend the court hearing. Don't expect an Old Bailey style trial – County Court hearings take place in a private room with you, the district judge and the lender's solicitor.
You will get a chance to tell the judge what measures you intend to take in order to pay off your arrears.
If your offer is reasonable – for example, by agreeing to remortgage your home, they usually grant a suspended possession order. This allows you to stay in your home provided you pay off the rent plus an agreed amount toward your arrears.
4. POSSESSION ORDER
If you can't convince the court that you are able to clear the arrears – or if you fail to turn up for you County Court hearing they will issue a possession order. This gives you 28 days to settle your debt or face eviction.
5. EVICTION WARRANT
If you cannot settle your arrears within 28 days OR if you fail to comply with the suspended possession order the lender can apply for an Eviction Warrant without further recourse to the courts. Once an eviction order has been issued, court bailiffs will then set a date when they will visit your property to make sure you have left. The primary aim of repossession specialists is to ensure that this does not happen.
