When you have mortgage on your home, your lender has the right to issue repossession proceedings in case you fail to make required payment in time. However, many a times lenders make effort to settle the issues without making way to the court. In case of no common consensus, lender takes necessary legal action in local courts. This is done with an intention to gain ownership on the property to be able to sell it and recover the pending amount.
Initially, the lender may send payment reminders to you which later turns into a letter from solicitor. In the event of non-payment after the initial steps, the lender begins repossession proceedings that lead to court hearings thereafter. If you agree with the repossession plan of your lender, you can consent for sale of the property. However, in the case of disagreement you can take legal help on How to stop repossession of your house
In case you intend to make payment to your lender, take immediate steps to negotiate with him. You can discuss a short gap in payment upon his agreement or pay arrears in installments if your lender gives a go-ahead. In certain cases, lender may agree to prolong your term of payment with rise in your installments paid. You can find ways to stop repossession of your house by renting out your property and clearing your arrears with the rent received. (more...)