Worried about repossession?

Everyone knows that 'your home may be at risk if you do not keep up repayments on a mortgage or other loan secured on it'. We've all seen that sentence a hundred times, but what does it really mean?

It doesn't mean you'll lose your home the instant you miss a payment. You have legal rights, and there are many easier ways for creditors / mortgage lenders to get their money back! Going to court is a complicated, lengthy process, and most lenders see repossession as a last resort. Most would rather sit down and discuss how you're going to pay what you owe.

Still, you must always think very carefully before you secure any debt against your property. Your lender also has legal rights, and needs to protect the money they've lent to you. If you miss payments, the lender may feel that they need to take action to recover their money, and you may end up losing your property.

As with any debt, the key thing is to talk to your lender - if you need help, tell them!

So what should I do?

It depends on how much you owe, how long you've owed it for, whether your creditors have already spoken to the courts, etc.

But whatever your situation, the sooner you take action, the easier it'll be to sort out. Click here for some advice on avoiding repossession.

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