I’m Facing Home Repossession! What Should I Do?

May 18, 2018

Struggling to pay your debts? Afraid to open the post? Worried what the future might bring for you and your family? You’ve come to the right place!

 

At Insolvency Help, we help struggling homeowners on a daily basis — and more than 90% of the time the homeowners get to stay in their family home.

Depending on your financial situation (and for how long you’ve struggled) there are a variety of actions you can take that can help you through your financial arrears.

In this article, we’ll go through three of the most common scenarios that struggling homeowners find themselves in and what the options are.

 

home repossession

 

What to do if you’re behind on your mortgage payments

 

If you are struggling to pay your mortgage or think that you will struggle in the future, you should contact your lender’s Arrears Support Unit immediately or talk to the Money Advice and Budgeting Service. They will be able to guide you through what lies ahead and discuss your options going forward.

Barricading your mailbox so you can’t receive any more bills or letters is not a long-term solution. In fact, it’s not a solution at all. If you allow your mortgage arrears to build up, you’ll be in the fast lane to having your home repossessed.

You need to remember that your lender does not want to have to repossess your home, they want you to keep paying your instalments. Repossession is the last resort.

The earlier you realise and accept that you are financially struggling, the quicker the situation can be solved.

 

home repossession 2

 

What to do if you’ve been threatened with home repossession

 

When you take out a mortgage to buy a property, that property acts as collateral. In other words, if you stop paying your mortgage payments, your lender can take the property back to recoup their losses.

If you are in serious mortgage arrears and you’re facing home repossession, we will strongly advise you to get in touch either with ourselves or the Money Advice and Budgeting Service as soon as possible.

At Insolvency Help, we help struggling homeowners stay in their homes by negotiating a personal insolvency arrangement (PIA) on behalf of the homeowner.

The Irish insolvency legislation (including PIAs) was formulated with the specific Government aim of keeping people in their homes. To further this, the court has the power to force mortgage lenders to accept PIA proposals.

When negotiating a PIA, there are different things a personal insolvency practitioner (PIP) can do. The overall aim is to permanently restructure the mortgage so that it becomes more affordable for the homeowner — this could include altering interest rates and duration of repayments.

If your home is in negative equity, we might be able to write this off. When we write off negative equity, the overall mortgage price tag is reduced — making your monthly contributions more manageable.

At Insolvency Help, we’re part of the government-funded Abhaile scheme. This means that we might be able to offer you free initial advice. To find out if you qualify for the Abhaile scheme, get in touch with us today.

 

home repossession 1

 

What to do if your lender is taking you to court

 

If all your options are exhausted and you refuse to agree to the repossession, your lender may resort to taking you to court.

If you have to go to court, the Money Advice and Budgeting Service (MABS) can help you prepare for this.

When an issue like this goes to court, you’re generally liable for the cost of court action. This is something that you need to consider as it could set you even further back financially if the court sides with your lender.

Under that Land And Conveyancing Reform Law 2013, the court can postpone repossessions for up to two months to allow the borrower to explore other possibilities such as hiring a personal insolvency practitioner (PIP).

Should you decide to appoint a PIP, the court is obliged to give a further 70 days to let the PIP negotiate with lenders.

At Insolvency Help, we’re part of the government-funded Abhaile scheme. The scheme provides homeowners in mortgage arrears with a voucher that can be used with a number of independent expert legal and financial services.

If your financial institution is taking you to court, get in touch with our team to find out if you qualify for the Abhaile Scheme. We might be able to restructure and reduce your mortgage making it affordable once again and allowing you to stay in your home.

Request a callback today and find out how we can help you get back on your feet again and save your family home

Insolvency Help is a trading style of 180 Advisory Solutions Ltd


Barry Stewart is authorised by the Insolvency Service of Ireland to carry on practice as a personal insolvency practitioner(authorisation number PB00282). Barry Stewart is also authorised to act as an insolvency practitioner in the UK by the Institute of Chartered Accountants Scotland.