Life can be difficult and sometimes making ends meet each week can be a continuous struggle for some families. Due to the government incentives over the years, buying your home had become more affordable and many people were able to get themselves onto the property ladder. However, once they were on there, their circumstances changed due to issues beyond their control and they were unable to keep up with mortgage payments. There is nothing worse than the continued and ongoing threat that the bank or lender is going to repossess your home and leave your family out on the street.
There are ways to stop home repossession and it begins with taking the necessary steps to avoid court action when you get into arrears. Let’s look at some of them here now.
- Speak To Your Lender – There is no point in ignoring repeated reminders from your lender because they are not going to stop and they are not going to go away. You need to contact them and try to come to some sort of alternative arrangement. After all, some money coming in is better than none at all and the lender understands that you can’t get blood out of a stone when the time comes. You need to write a letter detailing why it is that you are in arrears and tell them that you are making real efforts to address the shortfalls and once you come up with some kind of strategy, you will contact them again. However, don’t leave it too long. In the meantime, talk to an advisor and try to pay a little of what is due every month.
- Take A Look At Your Options – You may have other options to look into but it depends on the type of mortgage you have signed up for. Did you take out a relevant insurance policy to protect you in the event that you lost your job or got into difficulties? How far are you behind in your monthly payments? Maybe the lender allows for some lateness. Figure out why you are in arrears and if you can influence that situation in any way. Maybe you can cut back on some unnecessary things to get the additional money to make your monthly payments. Maybe this is just a short term cash flow issue and it will address itself later. Tell your lender this and explain when you will be back on track.
- Take A Look At Your Finances – Being behind on your mortgage is a fairly big issue and this debt needs to be addressed before your other bills. Don’t worry about credit card bills for now, nor phone bills or cable subscriptions. These are not priorities for now and any extra money that you have should go towards paying off your mortgage arrears. There are many apps online to use like budgeting tools that will help you work out where you may be able to cut spending.
Being behind on your mortgage is not a nice situation to be in and so try to prepare for such eventualities and have a plan B if it does occur. Remember, don’t ignore the letters from the lender.