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Dealing with repossession
 You don't have to lose your home
Repossession is a scary thing - but you are not the only one to face this problem. There are thousands of other people in the same boat as you. In fact, the repossession rate is at its highest for eight years (although it's still a small number compared to the number of homes that exist in Britain). So don’t feel alone or ashamed – there are a lot of people who can share their experiences with you. Here is one person who has been through it and has come out the other side. So remember there is help and you don’t have to pay for it. Just go through it step by step. Do you have to be repossessed? There has to be a legal reason for your home to be repossessed. The most common reasons are:
If you don't keep up with the repayments on your mortgage or a secured loan (that's a loan that is "secured" against your house), your lender can take legal action against you to repossess and sell your home in order to get back the money you owe. Remember, even if you keep up to date with your mortgage, you could lose your home if you fall behind with payments on your secured loan. Normally two months of arrears is enough for a lender to take action. Most lenders will try to come to an arrangement to clear the arrears and avoid taking proceedings. On the whole they don't want to repossess you, they would rather have you carrying on paying the mortgage, or the loan, for years. But if they think that you won't be able to then they will certainly want to get their hands on your home. Your lender can't just throw you out – they have to follow the correct procedures and get a court order stating that you have to leave the property. In many cases, even at the last stage just before eviction, repossession can be stopped. So what can I do now? If you are being threatened with repossession, talk to a free adviser immediately. Don’t be conned by one of the companies that offer to buy your home for you or offer you a quick but expensive loan. Speak to people who will give you genuine, unbiased, free advice. The charity Shelter has an Advice Services Directory which lists free housing advice services near you. Or you can go to your nearest Citizens Advice Bureau for free, immediate help. What can I do to get myself out of this? There are fabulous resources available to you completely free of charge. They are 100 per cent independent and offer excellent advice tailored to your precise circumstances. Follow the three steps below and you can’t go wrong. Step 1 Find out and write down the following (and don’t leave anything out):
Step 2 Contact one or more of the organisations below. All of them provide expert advice completely free of charge. They have no hidden intentions, their only goal is to give you the best help and advice possible towards solving your financial problems. In the case of the Citizens Advice Bureau (CAB) their advice goes beyond the subject of finance. They will ask you for all the information that you have put together in Step One. Once they have gone through that they will advise you on the best course of action according to your specific circumstances. And what’s more they will even make sure you are getting all the money you are entitled to from sources such as benefits and tax credits. Citizens Advice Bureau (click on this link to find out your local branch) If you have serious, complicated or urgent debt problems then the CAB is probably your first port of call. For example, you may owe money to several organisations, or you may have been threatened with repossession, or you may be about to go to court regarding unpaid debt. The CAB will arrange a time for you come to the office nearest you so that you can meet with an expert who can assess your situation and provide the best advice on what to do next. As well as its permanent offices, the CAB also runs temporary clinics for smaller, more remote communities. It will even try to come to you if you have serious mobility problems. In worst case scenarios, their help can cover '"an A&E service" as Moira Haynes of the CAB describes it. “We have a County Court Advice Desk that can help people who are about to go to court. This can have a significant impact upon the outcome of the hearing even at this late stage.” Following the meeting the CAB will, if you would like, negotiate on your behalf with your creditors (the banks and other organisations to which you owe money). So if you are dreading talking to all the people you owe money to, stop worrying – help is out there. Consumer Credit Counselling Service (0800 138 1111) The CCCS specialises in helping people with credit problems eg unpaid credit cards, overdrafts, store cards and other debts that are not secured on your home. However, it has just set up a special unit to deal with questions about repossession, so it will be able to help if you call. The service is primarily telephone based. In the first, fairly brief call you speak to a Duty Counsellor who takes your details and makes an appointment for the second call – the "full scale counselling," as the spokesman puts it. They will need to know your debts, benefits, income and other financial information mentioned in Step One. The call can take up to an hour and equip you with the options that open to you and how to proceed. If you wish to retain your anonymity, you can get the same service through the CCCS's website. National Debt Line (0808 808 4000: freephone number) Another telephone and web-based service, the National Debt Line has the broad remit of dealing with "debt problems". It also has much the easiest website to navigate. If you just want to test the water, download a Budget Planner, Information Pack or Debt Management Plan. For more detailed information and counselling then you can call them. National Debt Helpline works in one initial call and is then available for any further queries. It will first establish all your circumstances and then go through the options that are open to you. It doesn't contact your creditors or lenders (unlike the CAB) but it does give on-going support for self help. Bankruptcy Advisory Service Limited (01482 633034) If you are in danger of becoming bankrupt, this organisation run by mother and daughter Gill and Jo Hankey gives clear, simple advice at an extremely low fee (just a £25 one-off payment). They will help you avoid bankruptcy if that is possible. If not, they will guide you through the bankruptcy maze and will help you limit the damage it can do to you and your family. They will also advise you if you face repossession due to bankruptcy. The Shelter website also has very clear, helpful advice as to what you can do now if you are facing repossession. Advice is here on what to do if you have had letters from your mortgage company, your case is being taken to court or you are unable to pay the mortgage. It also has information on voluntary repossession and what a mortgage rescue scheme is. Companies that offer to buy your home now and then rent it back to you so that you can stay put sound like they are doing you a favour. Actually they are not. Don’t touch any of them. See our article about why they are bad and how they will make your life even worse. Should I try equity release? Equity release schemes are useful for a few people but not many. Also, you need to have a substantial amount of equity in your home to make a loan company interested. If that is the case then there will be better alternatives for you than equity release, including selling your property through an estate agent or possibly getting a secured loan. Also, to have a proper equity release scheme you need to be over 60. See our article here that explains how it works. For further advice, Age Concern England offers an easy to read fact sheet, "Raising income or capital from your home", free of charge from their info line 0800 009966. What happens if they send the bailiffs round? If the court orders a repossession, it will set a date by which you have to move out. If you don't leave by that date, your lender can ask the bailiffs to evict you. Even at this stage, it may be possible to stop the eviction. The bailiffs will come to your home and leave a form informing you of the date and time of the eviction. The amount of notice you get depends on your local bailiffs' office, but you should have at least a few days' notice. In such instances, bailiffs have a right of peaceful entry only. This means that they can't use force to enter your home (i.e. they can't break a window or a door). However, they can enter your property through an open door or window (front and back) and can climb over fences and gates. You do not have to let a bailiff into your house. A bailiff cannot force their way past you if you answer the door. At no time are they allowed to use unreasonable force. However, they can physically remove you from your home if necessary. The bailiffs have to act reasonably, and mustn't be violent. Once they have got you out the locks will normally be changed to make sure you can't get back in. This will happen even if you are not in the property when the bailiffs turn up. The bailiffs won't remove any of your furniture or belongings unless the court has decided they should do so. If you don't take your belongings away they will be left locked inside. You will need to make arrangements to collect them later. You usually have to remove everything within about two weeks but it can vary. If you can't do so and you don't make other arrangements your lender or freeholder will sell or get rid of them. How to deal with the emotional trauma of repossession Don’t suffer alone. You don’t need to. Talk to friends and family if you can but also get counseling early if things seem too much to handle. Again, the Citizen’s Advice Bureau can help. It has a counselling directory which lists counsellors for all types of problems in your local area. Also, share your problems with other people who have been, or are going through, the same things. Go to our messageboards, the Consumer Action Group or Parents Centre. Don’t forget the Samaritans who can be contacted online or on the phone any time of the day or night. Remember, this is not the end of the world and you will be able to pick yourself up again. There is a lot of free help available to you and if you use it you will be able to get through this. Useful contacts
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Jasmine Birtles
Moneymagpie Moneypedia
07.01.2008
