Housing Minister John Healey has today dedicated an extra £2.5 million to the Government’s campaign to help anyone with mortgage worries to seek advice. He has also extended a Government campaign across the country with a special local push in 86 repossession hotspot areas. Last year, more than 333,000 homeowners have received help and advice with their mortgage.

In announcing the new financial input, Mr Healey said:

“With the pressure on homeowners set to remain throughout 2010 we must keep the Government support in place. Cutting that special help now would put an end to these special efforts now would put more families at risk of repossession.

“So today I am extending the Government’s campaign so people know they can get free impartial and practical advice, both online or over the phone.

“We’ve pulled out all the stops with Government support to help people avoid losing their home. More than 330,000 families have had help and advice with their mortgages over the past year, which is one reason why repossessions are running at half the rate of the last recession.

“I would urge anyone facing money worries not to bury their head in the sand, but to go to our repossessions help website or call the National Debtline to get help in keeping their home.”

Housing Pressure will Continue but Help is at Hand

Despite the positive news, the CML have warned that pressure on homeowners will continue throughout 2010, which is why the Minister has extended the previous campaign. If you need help managing your mortgage payments, the It’s Your Home campaign
will give you the tools you need to prevent your home being repossessed. You’ll also find stories from some of the 330,000 homeowners who have already received help and advice.

Another superb source of help is the National Debtline, you can phone them free on 0808 808 4000 for help and support.

And working with the Government, Citizens Advice offices across the country have run over 100 public events in the “hotspot areas”, so local people have been able to drop in for free mortgage help and advice, with displays and stalls set up everywhere from libraries and supermarkets to schools and hospitals – and even a local zoo.

The Big Issue (http://www.bigissue.com) has an interesting article which shows how devastating repossession can be with people still in debt after getting their house repossessed back in 1991.

Amazingly they are not qualified to get housing support straight away and are deemed “intentionally homeless through defaulting on their mortgage due to their own financial mismanagement” – seems harsh indeed. One might reasonably suggest that there was nothing ‘intentional’ at all about their situation and at the end of the day they are homeless and need support from the same councils and government they have paid so much tax to over the years. Some are lucky and are classified as “unintentionally homeless”. Can any of our readers help us with how to claim unintentional?

1991 – back when a swathe of people lost their jobs and interest rates were at 15.5% – ouch.

The Big Issue interviewed Melody Clarke (married with a child) was a victim of house repossession back in 1991 and whilst on the breadline every cent went back to pay the then £50,000 mortgage to the bank.

After repossession City Bank sold or auctioned their property for £27,000, so together with the Clarkes £29,000 which they had paid in mortgage payments during their time they thought the £50,000 plus interest had been paid off. Unfortunately, no, they got hit with a £70,000 bill. £70k in 1991… That’s a lot of money even to well paid City folk now… 18 years later!

The couple spent the next 12 years fighting the bill through the courts. 3 hours a day for 12 years later they did in fact win the battle, the interest upon interest, compounded interest was finally agreed at a more manageable £4,500.

IMPORTANT – Clarke is now a director of York Credit Union and states “I’ve never come across a case where the mortgage company has got the figures right. Invariably, they’re vastly overstating the debt. The trouble is most people just take their word”. Outrageous but we here at HouseRepossession.co.uk have seen this in the corporate world far too often, mistakes are made, hundreds of thousands or millions are and can be moved with a keystroke or one poor MS Excel formula.

We are a nation obsessed with bricks and mortar – hard not to be when your mate down at the pub just made a killing purchasing the house back in 1999. However 71% of UK households own their house (have a mortgage at least) compare that to 31% of Germans, 50% of Austrians and 55% of the French.

Lesson one – Fight the repossession and try to get the house sold privately (use an agent) before the auction. Maximise your house sale value.

Lesson two – Check the mortgage figures. Do you really owe that much? Does it add up? Ask multiple experts, someone excellent with numbers, a Microsoft Excel master is what you want. Don’t always believe the local accountant or surveyor.

Scotland, like every other part of the UK, is feeling the strain of the ongoing recession. Around 7,500 Scots – or 20 per day – are expected to lose their homes this year. It has been claimed that homeowners living in Scotland are more vulnerable than other parts of the UK to repossession, as the new pre-court action protocol, introduced in November, does not apply to Scotland.

The protocol, covering England and Wales, states that lenders have to negotiate with borrowers before court action is undertaken, thus protecting vulnerable homeowners from the aggressive tactics employed by some lenders when their customers fall into arrears.

If you live in Scotland and are facing repossession, try not to worry; if you seek help as soon as you begin to struggle with mortgage repayments, your lender is much more likely to help you. You may qualify for a payment holiday on your mortgage, or your lender may allow you to switch to an interest only mortgage until your finances improve.

If you run up substantial arrears and are overwhelmed by the situation, contact an advisory organisation such as Shelter Scotland or the Citizens Advice Bureau, or seek the advice of a legal aid solicitor

Repossession in Scotland is different from that in England and Wales, and the following is a brief description of the Scottish repossession process:

There are three main ways a lender can begin repossession proceedings:

1.      By serving a calling-up notice, giving the homeowner 2 months to clear their arrears. If arrears are not cleared within this period, then the lender can sell the property without going to court. If the borrower refuses to leave the home, then an action for repossession allows lenders to evict

2.      By serving a default notice, which gives one month’s notice to clear arrears and details of any repossession and power to sell

3.      By issuing a certificate with the court, if a mortgagee misses mortgage payments (legally known as ‘proceeding on the debtor’s default of standard condition 9 (1) (b) of the standard security (ie the mortgage)). The certificate will provide proof of arrears.

Although homeowners in Scotland are not covered by the pre-action protocol, they are afforded some protection by the Mortgage Rights (Scotland) Act 2001. This allows those affected by repossession to apply for suspension of enforcement action, giving them extra time to repay any mortgage arrears. The suspension of enforcement is known as a section 2 order and also applies to any loans secured on a property.

A section 2 order can only be applied for on properties used for residential purposes, and where it is the owner’s main residence – it does not cover holiday homes or second homes. There are 4 groups of people who may apply for an order:

1.      The debtor or owner

2.      The spouse of the debtor/owner, if they live in the property as a matrimonial home

3.      The partner of the debtor/owner (this includes same sex relationships)

4.      The ex-partner of the debtor/owner (if the relationship lasted in excess of 6 months, the debtor has left the home, and the debtors’ child(ren) live within the home (stepchildren included)).

If a calling up notice is served, an application for a section 2 order must be made before the calling up notice expires. If you receive a default notice, then an application must be received no later than 1 month after the period as set down in the default notice. Where proceedings are raised under sections 24 of the conveyancing act and section 5 of the heritable securities act, an application must be received before the conclusion of the court case.

If you are fighting repossession in Scotland, it is always best to file a section 2 order as soon as possible, and you can obtain one

1.      by way of summary application procedure (if served with a calling up or default notice)

2.      by applying to the sheriff, where a lender has begun enforcement proceedings in the sheriff’s court

The granting of a section 2 order is at the discretion of the sheriff, in accordance with whether the court considers the circumstances reasonable. The following criteria are taken into account:

• Reasons for default
• A debtor’s ability to fulfil the conditions of their mortgage within a reasonable period (determined by a case’s circumstances)
• Whether the debtor can reasonably secure alternative accommodation
• Mortgage to Rent application pending
• If the property is actively being marketed for sale

If an order is granted, any enforcement action will be suspended as seen fit and a creditor cannot take further action whilst the section 2 order is in force.

The court, however, does have the power to change or revoke an order if so requested by either lender or debtor; for example, if a debtor does not stick to the terms of the order, it may be revoked. Similarly, if a homeowner suffers a drop in income, they too may apply to court to request a variation of the order.

If you live in Scotland and fear repossession, contact a solicitor, Shelter, a law centre, or the Scottish Legal Aid Board in the first instance – they will be able to offer you (free) invaluable advice regarding what your next course of action should be. The Scottish legal aid board does NOT offer legal advice, but can explain the legal aid process.

Graeme Brown, director of Shelter Scotland, comments:

“Every repossession is an individual tragedy. If you are struggling with arrears, getting help as early as possible is the key to keeping a roof over your head. We would urge anyone facing housing issues to seek independent, impartial advice as early as possible. Call the Shelter Scotland helpline on 0808 800 4444 or go online for advice at shelter.org.uk/get_advice“.

Remember – the sooner you seek help, the better your chances of holding onto your home.

- Six Steps to keeping your home:

1.    Sort out your budget – If you’re feeling the pinch, take a look at your financial situation and see if there’s anything you can do to improve it. Ask yourself:
.    Can I cut back on spending without hardship?
.    Can I get a better deal on my mortgage, insurance, utilities or other essentials?
.    Is there anything I can do to increase my income? Can I claim any benefits, increase my hours at work or take in a lodger?
An adviser at a Citizens Advice Bureau or money advice centre can help you work out a budget and claim any benefits you may be entitled to.

2.    Don’t ignore the problem – If you receive a letter from your mortgage lender, don’t shove it to the back of a drawer. Get advice instead! Visit your local CAB or money advice centre, or call Shelter’s helpline.

3.    Talk to your lender – If something goes wrong and you can’t meet your monthly mortgage payments in full, you should tell your lender immediately. It is really important to contact your lender!

4.    Pay what you can – Even if you can’t afford your entire monthly payments, show that you are willing to pay what you can. If your lender knows you are trying to pay off your loan, they should allow you more time to sort out your money problems.

5.    Find out what your options are – Repossession should be a last resort for your lender, and they ought to consider ways to prevent it happening. For example, you could decide to sell your home yourself, or apply for a debt payment programme or the Scottish Government’s mortgage to rent or mortgage to shared equity scheme or the UK-wide homeowners mortgage support (HMS) scheme. An adviser at a CAB, money advice centre or at Shelter will be able to help you look at all the options.

6.    Make the right decision for you and your family – Before you and your lender agree on any changes to your mortgage, ask your lender to tell you about the longer-term implications of what’s proposed. Get advice before making any choices.

You can avoid repossession by making a quick sale and if you sell for a figure that enables you to pay off the arrears you owe from the profit, then you are debt free. This can be one of the best ways to avoid repossession, because it leaves your credit record relatively intact. You’ll then be free to buy again when you’re in a position to.

Sell quickly but be cautious

Whatever you are selling, the need for a quick sale immediately puts you in a vulnerable position. You leave yourself open to fraudsters, and to people trying to turn a fast profit or get your home for a rock bottom price. So be careful about who you do business with, no matter how tight things get. Everyone has heard about people who have accepted, in desperation, offers less than half of their property’s value just for a quick sale.

Valuation – Understand what your home is worth

Your house or flat is only worth what someone is willing to pay for it. The market definition used by the Royal Institute of Chartered Surveyors (RICS) which all property valuers are a member of quote the definition of market value as:

The estimated amount for which a property should exchange:
- on the date of valuation (or sale)
- between a willing buyer and willing seller
- in an arms length transaction
- after proper marketing (note this would not include sale by owner or limited marketing due to a quick sale)
- when both parties had each acted knowledgeably, prudently and without compulsion (it could be argued that a quick sale is “compulsion”)

Remembering that you are looking for a quick sale and therefore a discount will usually be required as you have broken two of the rules above, (a) proper marketing and (b) without compulsion.

Value your own house with accuracy

Make sure you understand the RICS definition, it is tried and true. You can value your house just as well as any other valuer or real estate expert. Its quite simple, you just need ‘comparable sales’. Sales of houses or flats that are comparable to yours which have sold within the last 1 or 2 months. These will give you a perfect idea of what your place would actually sell for given the points above.

For example, if you own a 3 bedroom house with a separate lounge, kitchen and one bathroom then look for houses that have sold exactly like that. You are trying to compare apples with apples. The best method is to ask local real estate agents for a list of ‘comparable sales evidence’ that they know of, you may have to hound them for these details but trust us, they have the details, so beg if you need to! Ask the agents for a PDF of the property to be emailed over, or check their websites and ask them what it sold for. If they don’t want to tell you, ask; was it over £200,000? Was it less than £230,000… so it was £220,000 then was it? This method works… you will get a ballpark figure. Keep humor in the game.

Once you have say 10 of these comparable sales details of houses in and around your area similar to your place then need to see where your house fits into the puzzle. Ask yourself, is my place better than this one and worse than this one? This one has an extra bathroom but its on a main road. This one is really big but has a small backyard etc etc until you are happy that you know where your house fits and therefore what it is worth on the open market.

Price per square foot net internal area?  (Per sq ft NIA)

Professional builders, valuers and estate agents (well the good ones) will be able to talk to you in terms of capital value per sq ft NIA (per square foot net internal area)

Take another look at your 10 comparable sales and if they have floor areas written up work out how much the properties sold for per sq ft NIA. That means a 1,000 sq ft NIA house which sells for £250,000 is worth £250 per sq ft NIA capital value.

Sale Price /  Sq Ft NIA = Capital Value Per Sq Ft NIA.

What is the average sale price per sq ft NIA of your 10 comparable sales? Maybe £250 per sq ft NIA?

Now measure your own house up with a tape measure, internal wall to internal wall making sure you include hallways. Its easier to measure in square meters first so for example a room measuring 5.28m x 3.84m = 20.28 sq m. Then convert the sq m to sq ft, by multiplying 20.28 x 10.764 = 218.29 sq ft NIA. Add up all your rooms to arrive at a total.

So you have calculated that your house measures 800 sq ft NIA, therefore if the average house like yours, in the same area sold for £250 per sq ft NIA then yours should be worth approximately £200,000.   (800 sq ft x £250 per sq ft NIA = £200,000)

This is an excellent sanity check to see if you have valued your house correctly. Does it fit in with the other 10 comparable sales? If so then you can be quite confident that your house is worth approximately £200,000 if marketed correctly on the open market.

Remember that cellars and garages are sometimes included in sq ft area figures of sale particulars and maybe this area is worth 50% of the total capital value per sq ft… or less as they are cheaper to build.  Also note that brand new houses will be worth more per sq ft NIA than one that is dilapidated.

So now you should have a good idea what your house is worth in today’s market and given that you need to sell fast a good rule of thumb is to deduct at least 10% if not 20% off this value. Think about using 20% off as a base level. So given this example your house should be worth at least £160,000 (£200,000 less 20%.)

If this value would cover your mortgage and debts then you should consider contacting quick sale companies to see what they would offer you or if your real estate agent could sell it for this amount or more straight away. Otherwise, you will invariably end up receiving less money through repossession after bank fees and the fact it’s sold at auction.  Plus you will have black marks against your credit history.

How to sell your home fast

Ask yourself these four simple questions:

• How will I sell my house?
• Who can best help me make the quick sale I need?
• How long will it take to sell?
• Will I get enough profit to get me out of trouble if I sell my house quickly?

Who are the best people to help me?

You can sell your house through an estate agent, online, or both. You can sell your home yourself, avoiding estate agency charges and keeping tight control. Or you can take the plunge and handle the whole process, including conveyancing, yourself for a quick sale. However, please note all that has been mentioned in this article as selling your home yourself is not for the fait hearted.

How long will it take to sell?

To a certain extent, this is up to you. It depends on the choices you make. There are a few key things to think about.

Be realistic about your quick sale selling price

Following the self valuation example above you should have a good idea of what your house is worth on the open market and less 20% if offered as a quick sale / fire sale. There’s no point trying to get more than your home is worth, unless you have all the time in the world to wait for the person willing to pay your price. If you want a quick house sale, set a realistic price based on the average figure calculated from at least three estate agent estimates. Make sure these estimates are based on a sale within a certain time period… not asking prices! Ask them to back their prices up with comparable sales evidence then check all this against what you think it is worth.

Avoid panic decisions by deciding beforehand the lowest price you’re prepared to go to, and don’t budge from it. The whole point of a fast property sale is to make the money you need quickly.

Visit dspropertyconsultants.co.uk for a variety of useful information, note their very low fast sale price versus value… as low as 60%. This is simply an example of what is out there and we do not endorse this website. In fact be very careful at these percentages… Your local rich plumber would pay you more! Go and ask him!

Hints and tips for making a quick sale

Aim for perfection with DIY!

A quick sale can depend on how good your home looks. It doesn’t always cost a lot to fix things yourself and a lick of paint makes a huge difference. It just takes time and effort and it is very worthwhile. Make repairs and clean up tatty areas like scuffed skirting boards and stained kitchen surfaces.  It is remarkable what a difference simple things like this make to the selling price. And because most people prefer to buy somewhere they can move into straight away than a fixer-upper, you’re much more likely to sell fast. Make the very best of your interior and garden. Painting is proven to be the cheapest method of increasing your houses value.

Make the most of your home and garden and net a quick sale

You’ve probably seen the TV programmes. So you’ll understand how important it is to make the most of your home and garden if you want a quick sale. Just like DIY, a clear, attractive interior and an attractive, functioning garden can make thousands of pounds’ difference to your asking price. And, if someone falls in love with your home, it can result in a super-fast sale.

Apply common sense and de-clutter it!

Hide or throw away your clutter, throw open the windows for fresh air and keep everything squeaky clean and fresh. If you have a spare room full of clutter, turn it into a spare bedroom so people can see how it’d look without having to use their imaginations! Then mow the lawn, weed your gardenbeds and trim back the wilderness. Perhaps one of your family or a friend loves gardening? If so, ask them to help you out.

There’s plenty of great advice online. Try housedoctor.co.uk, the official UK website of Channel 5’s Anne Maurice, presenter of ‘House Doctor’. Or visit the Channel 4 website: Click Here.

Will I get enough profit if I sell quickly?

This is something to calculate carefully before you start. If you’re unlikely to get the profit you need from a quick sale, it might be better to take another option. But if you can get your property into top condition, looking its best, and the average estimated asking price matches your own valuation then selling quickly can be a very effective way out.

Add your thoughts on a quick house sale…

How do you stop house repossession? You are given plenty of opportunities to turn things around and stop home repossession during the process. As the homeowner, you have certain rights. But you also have important responsibilities.

Taking your responsibilities seriously and acting promptly to make the best of a nasty situation will stand you in good stead with both your lender and the legal system.

This is a quick guide 7 ways to avoid repossession

Follow our useful hints, tips and advice. Learn what steps you can take to dig yourself out of trouble and find out how to avoid repossession.

Stop house repossession – ask people who know what’s what.

You need to be informed, this website is a great starting point but we always suggest that you start talking to the people who count. Talk to your bank and also to professional organisations.
The Citizens’ Advice Bureau is one organisation that can give you free, impartial advice about how to avoid repossession. Search online for your local office, or try the ‘phone book. Plus, there’s the Consumer Credit Counselling Service.

Citizens’ Advice Bureau: CitizensAdvice.org.uk
Consumer Credit Counselling Service: cccs.co.uk

How to stop repossession – face your problems head on

You know what problems are like. Leave them and they get worse. It might feel good to stick your head in the sand for a while but if you want to stop house repossession it isn’t the most intelligent strategy.
The moment you realise you’re having problems making your mortgage repayments, get in touch with your lender. Answer their letters, and go and see them face to face if you can. There will be a real person in charge of sorting out your mortgage arrears. Find that person. It might not be easy but start calling the bank and make sure you write down all contact you have with them, including dates, names, numbers, office and team they work in. Keep a record of all this, you will be amazed how useful this is, if nothing more to say “Sorry John, that’s not helpful, I have been told that by Kate and Sam from the Repossessions team, can I speak to a manager please?” I have seen this in action, they are usually small teams and they all know each other.

Make this issue a problem for a specific person at the bank, keep referring back to them. If its their problem they will work on it. If you keep getting bumped from person to person you will never get any results.

The banks are not all evil money grabbers, they want to avoid repossession just as much as you want to keep your home. They might suggest that you switch from a repayment mortgage to interest only, or take a payment holiday, or increase the time you take to pay it off. Whatever happens, at least you’ve put them in the picture. It might be a good idea to follow up phone calls to the bank with letters outlining what was discussed. This may sound time consuming but could be a good idea in the long run and get a better response. Keep a copy for yourself, it may come in useful in court one day!

Not so long ago, you might have been able to re-mortgage easily enough. Thanks to the credit crunch, the likelihood is now slim. A vast number of mortgage products have been taken off the market in the past 18 months and the required deposit has increased dramatically, at the time of writing, you could not get a good mortgage interest rate for less than 20% deposit or equity in the house. In the summer of 2007 you still could get 95% mortgages. But all the same, talk to an Independent Financial Advisor (IFA) to see if they have a suitable option to help you stop house repossession.

You might also want to have a chat with a good mortgage broker, try to avoid companies that employee sales staff that just plug your details into a computer and spout out what they see on their screen. Normally young people with little or no real life experience in mortgages themselves.

Good mortgage advisors have usually been in the market for 5+ years and understand that there are ways and means of arguing for better rates, discounts in fees and mortgage holidays. For example, some professionals, teachers, policemen and firemen can get discounts. Like anything, you can actually negotiate your mortgage, don’t expect to get much off, but anything is better than nothing.

The bottom-line is start communicating with your lender, contact a free professional body, talk to mortgage brokers and make sure you draw up a timeline outlining you exact financial position.

You can easily find a suitable IFA online. Try: searchifa.co.uk and ifa-guide.co.uk or consult the phone book.

Stopping repossession – can you save money by cutting back a bit?

How to stop house repossession? One good way to make a dent is to get intimate with your bank statements. If you pay by direct debit, you might find a few DDs that you can cancel to save money. Perhaps you could swap your luxury satellite TV package for Freeview. There are loads of small ways to save cash that, together, can add up to an impressive monthly sum. It might make all the difference. Here is a great list of 50 ways to save money, Thisismoney.co.uk/50ways

Maybe start shopping at a cheaper supermarket, get no name food instead of brand names. If you are a smoker or drinker or both, add up what you spend per month on that (truthfully!) you might be surprised at the cost. Maybe you could halve that cost by buying a cheaper product, going to a cheaper pub or simply, god forbid… cutting back. Go for a walk or run instead. Clear the mind and keep the pennies.

While you’re at it, check that your statements are accurate. Even banks make mistakes and you could discover spare money you didn’t know you had.

Get a second or third job – Obvious we know, but it could be the key.

Yes, it means more work but at this point it is clear you probably need more money. Without the luck of inheritance or the lottery the most basic way to make more money is to work.

If you can’t manage to get overtime at your current place of  work then maybe all that’s required is one night a week at the local supermarket, or help the local milk man or baker out in the morning. Just two nights a week at 5 hours per night at the current minimum wage of £5.73 would gross £248 per month.  Many security guards get nearly double that, or how about baby sitting?

Many people have children to look after or can’t afford to travel to work. Maybe you should look for a job online? You could sell your skills at elance.com (worldwide) or peopleperhour.com (UK based) – a good UK based copy writer should be able to get at least £15 per 500 words, excellent copy writers charge up to £75 per 500 words! English people are preferred for much work as they usually have excellent English skills when compared to someone from Eastern Europe or India. There are a myriad of skills people have, why not look to get extra cash selling yours and in the process stop your house being repossessed.

Talk to your bank and cut bank charges

If you’re overdrawn, which is likely if you’re facing repossession, your bank will probably be charging overdraft fees.

You’ll know from recent publicity that where bank charges are concerned, the people who shout loudest get what they want. Get in touch with your bank and negotiate your bank charges down to the lowest possible level. Threaten to leave or explain your charges would be a lot less at bank X. Explain that they can help you keep your home if you work at it together. They’ll probably be glad to help, as they like to avoid bad publicity and keep customers happy.

You could think about rolling up all your non-mortgage debts into one loan, which can help lower your monthly outgoings considerably… another good way to help stop house repossession.

Keep paying no matter what…

Even if you pay your mortgage lender a small amount every month, it’s better than nothing. You’re showing that you are honestly committed to putting things right. Behaving openly and honestly does more than almost anything else to improve your chances of negotiating throughout the process and stopping repossession.

Beware of people who take advantage

Think twice before signing up to a quick fix. If something seems too good to be true, it probably is. There’s no easy way out, so always read the small print and take independent advice. There is a large advertiser on the Internet that offers such a quick fix… at 1845% APR, that is not a misprint, their interest rates are out of this world.

If you’re using an Independent Financial Advisor, make sure they’re registered with the FSA (Financial Services Authority), which regulates the UK financial services industry and gives you protection as a consumer. In short, watch out for sharks.

Visit the Financial Services Authority website: fsa.gov.uk
Find more useful guidance at easyhousedirectory.co.uk and repossession-stopper.co.uk

Mortgage Payment Protection Insurance

Many homeowners buy mortgage protection insurance as an integral part of their mortgage offer, and soon forget they’ve got it. Nobody is going to remind you, so check if you’re insured. If so, check whether you can make a claim. Insurance companies can sometimes be reluctant to allow claims, and staff members are not always experts in what’s covered and what isn’t. So be persistent and make sure you get the full facts before you give up.

Claim benefits

If you do qualify it may be to your advantage to claim benefits. The UK benefit system is complicated. But it is worthwhile contacting social services to see whether you’re entitled to financial support.

Try every way you can think of to raise cash
Now’s the time for creative thinking. You’ll probably have been worrying about how to avoid repossession for weeks, even months. So get some help and a  fresh perspective… ask around if there is any additional work from colleagues or look in the local paper. At this point in your life you need to lock down the spending and make as much money as you can.

Perhaps you could let your garage to a commuter, parking spaces can be worth good money, take a look here to see what they are worth in your area: ParkLet.co.uk.

Or rent out a bedroom to a student. You might even be able to let your place and rent somewhere smaller, making a profit which will pay your arrears. This can be an excellent money maker, maybe you could enjoy a smaller place that’s further out of the city or from where you work and let your place and profit the difference. Think of it as a holiday… maybe somewhere in the country? Try the Gumtree.com

Remember to get your lender’s permission if you do any of these, some mortgage contracts exclude them.

Sell your home yourself

If you sell your home yourself, you’ll get a better price for it. This is true in nearly every case. But there are varying degrees of selling ‘yourself’ and using agents is usually the best method. Agents buy advertising in bulk, have shop fronts and mail lists and will normally sell your place better than you could by yourself. Most people who advertise and sell their property 100% by themselves think they are saving on the agency fee, the problem is so does the buyer and they expect a discount. Sale by owner can work but in general the statistics show it is not a good option. You are better off negotiating a lower commission fee from a hungry sales agent. Also try to avoid using multiple estate agencies, you get two signs outside your house, you confuse the buyers and most importantly neither of your agents give your house priority and therefore it’s a case of two ‘half jobs’ and not one agent gives it their full attention.

The obvious way… avoid repossession. Simply, make sure that you sell your own home rather than letting your lender take over the process through repossession. To give yourself the best chance of selling fast, keep on top of your estate agent and insist on being fully involved in the process. This way, you make sure everything possible is being done to sell your property quickly, at the highest price. Make sure you keep tabs on the market and watch other similar houses for what their asking price is or what they sell for, if time is important, which it probably is then make sure you price your house or flat very competitively. If the one down the street is the same but cheaper… then you NEED to drop your price. You need a sale in good time so act accordingly, this is not a time to be greedy!

Click here for more Quick Sale information

Be your own solicitor – We don’t advise doing this unless you have some experience.
To make the biggest possible saving, carry out your own conveyancing as well. There are good books available on the subject and the process isn’t complicated, just time consuming. If you have the time, it’s worth a go. Try amazon.co.uk for books about how to sell your own home or  mypropertyforsale.co.uk for detailed guidance.

Don’t hand in your keys

Never just hand your keys in to your lender. It is one of the worst things you can do and, once you’ve stopped being relieved, you’ll be horrified at how the debts continue to mount. You’ll still be responsible for your mortgage repayments plus your buildings insurance and all sorts of other costs until they sell your home. And where will you live?

So, how to avoid repossession? Take all the individual options we’ve mentioned here. And anything else you can think of. Fight to keep your home. Make the choice to be honest and prompt in your dealings with everyone, and take every opportunity that comes your way, and you stand a chance of avoiding home repossession.

If you have some more tips the community would love to hear from you. Please let us know below.

Now it is very difficult for these people to pay for the mortgage repayments. Unfortunately some companies are taking advantage of vulnerable people who are desperate to keep their homes.

I was pleased to watch this house repossession video as the company are an non profit organisation. So they should give unbiased, helpful advice.

Has anyone used this organisation in the past, it would be great to hear  whether you were happy with their house repossession advice?

Click here to view the embedded video.

FREE House Repossession Help Guides

What happens with suspended repossession?

A ‘Suspended Repossession Order’ is a legal arrangement between you and your lender following your repossession court hearing. It means that the repossession order has been suspended or delayed. If a judge believes your mortgage arrears can be resolved, they’ll try to award you a suspended repossession instead of a normal repossession order.

A suspended repossession order lets you stay in your house. But you have to agree to certain conditions and it is only usually acceptable if you’ve already found a buyer and are just waiting to complete the sale.

The conditions of suspended repossession

1.    You make your usual monthly mortgage payments in full.

2.    You pay an additional monthly amount towards your arrears. Most mortgage lenders will ask for the arrears to be paid off within a strict time frame, say three years. But the judge makes the final decision based on your financial circumstances. Occasionally a judge lets a person spread their arrears across the whole of the remaining mortgage. But don’t bank on it… it is highly unusual.

3.    You agree to sell your home within a set time and repay the mortgage in full.

For more details visit whereonearthgroup.com and cleanslatemortgages.co.uk

Only commit to repay what you can afford

Be careful not to commit yourself to unmanageable repayments, or your suspended repossession order will fail. It is vital that you stick to the terms of the order. If you don’t, things get scary; you can be evicted immediately without another court hearing.

Abide by the Terms and Conditions

Suspended repossession lets you stay in your home as long as you stick to the terms and conditions, which are explained clearly in the court order. If they’re not clear or you find them confusing, get professional advice.

What to do if you have problems?

If you think you might have problems with your suspended repossession order, contact your mortgage lender for advice straight away. Burying your head in the sand can lead to a swift and merciless eviction!

Changing the conditions of a suspended home repossession

If you need to change the conditions of a suspended repossession order, for example if you’ve lost your job, you do so via the court by paying a fee. But if you’re on benefits or have a low income, you can often get help with the costs.

CashForMyHouse.co.uk – UK Govenerment to stop House Repossessions.