As sooon as you’ve missed two or more mortgage repayments, your mortgage lender is legally able to start the repossession process for your house. Before they call on the legal system they will get in touch themselves, usually this won’t be through anyone at your local branch that you deal wtih regularly it will be through their debt management department.
The options your lender offers you vary depending on your exact situation but they may allow you to switch to interest only payments for a period of time, if your mortgage, or they may offer some other type of short term finance to deal with your problems. There are two important things to do no matter what options your lender offers. Make sure you keep notes and request documentation of all offers they make, keep all correspondence so you have a record of what’s been discussed in case you need to rely on it later
In some cases a short term fix may note solve your problems for good, but just create a bigger problem down the track – you shouldn’t enter into an agreement with your bank unless you’re sure it’s right for you and that you can meet your new commitments. Stage 2 If a few more months pass of unpaid arrears to your mortgage letter, you will get a letter from them or more likely from their solicitor. The letter will warn you that they’re about to begin the repossession process for your home by taking you to court. At this time your lender can apply for a repossession order. Stage 3 You will get a summons from the court. This will give you details of your hearing.