House repossession is the legal process by which a lender forces the sale of a property because the borrower has not met the terms of the mortgage. |
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As a homeowner, you can only be evicted if your lender or freeholder can prove a legal reason (such as mortgage arrears) why you shouldn’t remain in the property. Any kind of monetary difficulty is easier to resolve the sooner you face your finances, and you should seek advice to help you negotiate repayments with your lender or freeholder. Repossession is the worst-case scenario and before you can be evicted from your home the correct procedures must be followed. Such processes will be explained in the following sections.
Things to Consider:
The Facts...
- The number of people whose homes were repossessed in 2008 rose by 55 per cent.
- The Council of Mortgage Lenders (CML) estimates that 75,000 homes will be repossessed this year (2009).
- Those most vulnerable to repossession are first-time buyers, those with 100 per cent mortgages, sub-prime mortgages and fixed-rate mortgages.
- The Financial Services Authority (FSA) reveals that one in five mortgage holders are concerned about meeting their repayments in the next 12 months. But a quarter said they had no plans in place for dealing with the issue.