The number of properties taken into possession by mortgage lenders in the first half of 2011 was 7% lower than in the first half of 2010, according to the latest quarterly data from the Council of Mortgage Lenders. The data shows that 9,000 repossessions occurred in the second quarter of the year, slightly lower than the total of 9,100 in the first quarter, bringing the total to 18,100 for the first half of the year, compared to 19,500 in the first six months of 2010.
The total number of mortgages in arrears was also broadly unchanged in the second quarter of the year. However, there was a slight increase in the number of mortgages with low levels of arrears, and a reduction in the number in deeper arrears.
The CML today confirms that it is not making any revision to its arrears and possessions forecasts on the basis of experience in the first half of the year. The current forecast is 40,000 cases of repossession in 2011 as a whole, and 45,000 in 2012.
It is understandable with the ever increasing higher cost of living and the increasing rate of unemployment or early retirement why some people are struggling to keep up repayments on their loans.
It is far too easy to bury your head in the sand when you have money worries, especially when your lender or freeholder is threatening repossession. Although it is never too late to stop repossession, it is far easier to deal with matters early.
Your options will depend on:
As a homeowner, your lender generally has to prove to the courts that repossession is the final option open to them. Your lender will have had to follow the pre-action protocol. If you lender has not satisfied this protocol, it may be possible to stop this action before the court date. It is recommended that you do not ignore any letters and more importantly you keep a record of all correspondence including keeping a log of any telephone call, with a brief note of what was said or agreed. You may need this information when attempting any negotiations!
Don't ignore this letter, but Do Not Panic either!
It is important to keep your lines of communication open with your mortgage company. Ignoring these letters may give your lender the impression you are not concerned about the arrears and this may concern them! We recommend writing a letter to your lender to gain yourself a breathing period while you explore the various options open to you. At this stage we recommend you speak to an independent financial advisor, regulated by the 'Financial Services Authority' (FSA).
It may be time to seek legal advise from an independent solicitor, regulated by the 'Solicitors Regulation Authority' (SRA). It is normal for the letter to give you a final demand for payment, typically 7 days. It is also likely that they will suggest a proposal if you cannot meet the full arrears amount.
If you have been unable to stop your lender from starting court action this does not necessarily mean that you will lose your home. You are still able to negotiate with your lender right up until the court date. Your lender or their solicitor should be open to receiving any proposals which may help them postpone the court hearing. Again we would suggest you get an independent solicitors advise, regulated by the SRA.
If you can prove to the courts that you are taking steps to deal with the arrears, ie you have a change in circumstances eg new job or you have an interested party willing to buy the property, the courts will normally grant an extension of time. Do not just give the keys back to your property - Remember, you continue to be liable for any mortgage until the property is sold. If the mortgage company sell your property for a smaller amount than you owe, you are liable for the shortfall!
For further repossession advise call our specialist property team for free on 0800 0433660.
If your only option is to sell your property, our promise to you is to provide a honest and transparent service, at no cost to you and within 10 days!
