A couple of weeks ago I posted 8 tips for you if you were having trouble paying your mortgage. Â
The Times’ 10 tips for avoiding repossession covers similar ground, with a few other ideas which could help you out if you find yourself in this tricky situation:
- Understand the new rules – since October, lenders should be more willing to help you lower your monthly payments, such as by switching to an interest-only repayment method. (Interestingly, some lenders are refusing to do this at the moment, possibly fearing it would leave themselves open to even bigger problemsÂ in the futureÂ should the borrowers default).
- Cut expenses and increase income – your lender may be more sympathetic if you can prove you’re trying to cut costs and are aiming to increase your income by taking another job or finding another source of income.
- Don’t be bullied by your lender – although they might be threatening you with eviction if you don’t pay back the arrears quickly, you shouldn’t be repossessed if you can make your monthly payments plus a little off the arrears each month, according to National Debtline.
- Attend all hearings – if you miss a few payments, you might be requested to attend a repossession hearing. Do not miss such meetings, as if you can attend, you can demonstrate to the district judge that you can make the basic repayments, the judge will support your case.
- Request time to sell your property – if you can’t meet the monthly payments and have explored all other avenues, ask the lender for time to sell your property yourself.
- Share your problem – friends and family may be able to help out, so don’t keep your problems to yourself.