What Happens When Your House Is Repossessed?

Facing a repossession can be a worrying and stressful time. We understand that you have questions and concerns that need to be answered. Please check over the below blog where we have answered the most common questions in relation to a house repo.

What is repossession?

If you fall behind on the mortgage payments to your bank, they are most likely going to take steps to claim your property, evict you from it, and sell it to regain the money they loaned you. While not all companies will be in repossession when you miss one payment, each company has their own set of rules, which is why if you are concerned about repossession, you will want home repossession help right away. The bank will usually give you a set amount of time to pay what you owe in order to help stop repossession, but if you are unable to do so, then they will take action right away.

What happens when your house is repossessed?

If you are unable to make your mortgage payments, the bank will want to get their money back by taking control of your home, evicting you and your family, and then selling your property to another buyer. This will happen as soon as the lender decides that you are not repaying your mortgage and is able to get information about what they can ask for in terms of the sale price of your home.

How many months are in arrears before repossession?

While each lender varies, after you fall into arrears, it can often take up to a year before the bank is able to repossess the home and force out the owners. This can take less time, but it is all dependent on how long it takes to get a court order for repossession and eviction.

When does repossession happen?

Repossession is what happens when you fail to make your monthly mortgage payments to your lender and then take legal action to remove you from your home, take control of the property, and then sell it.

How long does repossession take?

Repossession can occur quite quickly, although the process takes a while to get to this point. Once you have fallen into arrears and the lender has communicated with you that you are going to be facing a repossession, they can usually get a 60-day order for repossession.

How can I stop repossession of my house?

It’s smart to take any steps you can to stop the repossession of your home. If you are faced with a repossession, you will first want to get legal advice and talk to your lender. When you show your lender that you are making an effort to pay your mortgage, they may be more willing to work with you on terms and to help you by lowering your payment or extending the length of your mortgage. It’s important that you move quickly with the help of a professional to stop a repossession.

How long does a repossession stay on your credit report?

While you will still need to declare to a lender that you had a repossession in the past, a repossession will only stay on your credit report for seven years.