Typically people acquire a house by obtaining a mortgage. When
you buy a property by mortgage, the property will serve as collateral or guarantee for the mortgage debt. So if you bought your house and failed to keep up with the monthly payments, your house is in danger of repossession.
In a case where you are having difficulty paying the monthly payments, immediately get in touch with the financial institution where you secured mortgage. They will assist you as much as they can because repossession will be the last recourse. There are also some organizations who might be willing to give support and advice to people who are facing this predicament. Keep in mind though that your house will also be in danger of repossession if you have other debts which had piled up. Creditors may seek to recover their money thru that recourse.
Ways in Avoiding House Repossession
Reduce Your Family Expenses
If you are serious about keeping up with your monthly payments, you must try reducing your family expenses. Try canceling your gym memberships, avoid dining out in expensive restaurants, don’t buy designer clothes, bags & shoes or by simply unplugging all electrical devices which are unused.
Make up for Late Monthly Amortizations
It doesn’t mean that just because you missed a payment that the lender will start the repossession process, but you have to preempt repossession by approaching the lender. They may waive late fees and help by devising a payment scheme which will work out for you.
Get a Loan from a Family Member or a Close Friend
This may be quite difficult to do; however, if your late payments are reasonable or are just temporary you can explain that this setback is short lived. Explain how you are going to pay and when you expect to settle it. To avoid an adverse effect on your relationship be sure to pay it as promised.
If you have tried all ways to settle your arrears, the financial institution can repossess your home and be able to regain the amount of money due them. But by then you will have had to find another home, which can be a very painful process.
If you agree to have your house repossessed, you must agree with the financial institution’s terms. You will be required to give consent in writing to repossess and sell the property. If the issue has to go to court, you as mortgagor will be liable to bear the costs of the court action.
If you and your lender did not come to terms as to the repayment plan or were not able to keep up the payment according to the plan, he will file a court case against you with the intention of repossessing the property. If you do not allow them to repossess your house, you will have to face a legal battle. Seek out legal help to assist you during this tough time.
No one wants to find themselves in the predicament where their home could be taken from them. If you feel that you might be in danger of this happening to you, immediately contact your mortgage lender and ask for assistance.