How to Stop Repossession

Low interest rates and high levels of employment are signs of good economy. Such environment brings optimism. Lenders feel happy to lend whatever to who ever. But as interest rates start to climb (as is UK at the moment), it brings threat to jobs. Lenders start to panic and start seeking repossession orders from courts across the land. Loosing a job is never a good experience. For many people it causes stress and often family problems – on top of repossession worries.

Repossession is not a good experience. I have spoken to many people before and after repossession experience and no human can help but feel for their state of mind. Unfortunately there is no easy way out – unless you can come up with the money these companies want to cover the interest payments. This is the only way to stop repossession. But there are other ways too. These are:

1. Speak to your lender

In my experience it is possible to work out a deal with your lender even at a last minute. They may be able to look into possibilities they have not looked into before – whether it is about lending you further money to clear your debts or a new payment plan. Even if you have been asked to appear in court for the proceedings to start, it is still possible to stop the repossession order. It is not all over yet.

2. But still, Be Prepared

If you do have to go to court, make sure you are fully prepared. Keep copies of all the letters and other correspondence you have had with the mortgage company, work out a detailed daily expenditure that shows where you can save money so that you can begin paying your debts and be ready to explain to the court why you are in payment difficulties in the first place. You may even have a plan on how you are planning to sell your house quickly for cash, if need be. The court may grant an adjournment or delay the repossession order if you can show that you are prepared to take your financial responsibilities seriously.

3. Seek Best Advice

Good advisors are worth their weight in gold. Good lawyers and financial advisors are used to negotiating with lenders. They know how to approach them. They can also help you show ways to clear your debts without loosing your house. For example, a good advisor knows what correct procedures must a lender must follow and what forms and documents are needed for them to make their case.

A good financial advisor also knows which third party lender can help you in your current situation. Some times it is possible to arrange loan from a lender who is willing to ignore certain things that your current lender is adamant to take into account. Financial advisors can often explain situation and buy you some extra time as well. This may even stop repossession altogether. So it is worth investigating into good advisors.

By: Gary Sherman
Credit:www.superfeature.com