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How long can you not pay your mortgage before repossession?

How long can you not pay your mortgage before repossession? | J Daniels & Associates

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If you’re struggling to make your mortgage repayments, you may be wondering how long you have before your lender starts the repossession process on your property. Every lender has a different set of guidelines on how long they will wait. However, you may find that you have a general time of three months before any action is taken against you.

If you’re having trouble making your repayments and are worried about repossession, read on below to find out everything you’ll need to know about the timeline for repossession.

What is repossession?

When you take out a home loan, your house is held by your lender as security. This means that your lender can repossess and sell the house if you fail to make repayments according to your loan contract. Repossession refers to the process when a lender takes possession of a property and sells after the homeowner fails to make their mortgage repayments.

How long can you not pay your mortgage before repossession?

Looking at repossession notice | J Daniels & Associates

Generally, every lender has different criteria when it comes to how long you can avoid paying your mortgage before they will start the repossession process. As a general guideline, you usually have to be in arrears for around three months before your lender decides to take action. However, your lender may have a different timeline when it comes to mortgage repayments and how long they will wait before taking any steps.

When these steps happen, generally, it does not mean that foreclosure has to occur. In most cases, it’s only too late to stop repossession once your property has been sold.  J Daniels & Associates can help to stop a repossession from happening by negotiating with your lender on your behalf or exploring other avenues of help. J Daniels & Associates may also be able to slow down the repossession stages and allow you to catch up on your repayments.

What steps does a lender need to take before repossession?

Getting help with repossession | J Daniels & Associates

In most cases, the stages of foreclosure may involve sending a default notice, sending a summons, and then getting a court order. Sending a default notice means that you usually will have a notice sent explaining that you have at least 30 days to pay back your missed repayments, plus the regular repayment on your loan.

In the case of a summons, your lender may serve you with a Statement of Claim or a summons. If you receive a summons, you may be given a certain number of days to either file a defence or go to court. If you don’t respond to this notice, your lender may then begin legal action to foreclose on your home.

Finally, if your lender is granted a court order to repossess your home, you may receive a Notice to Vacate. In some cases, foreclosed properties are either sold at an auction, or sold directly by the lender.

How can J Daniels & Associates help me?

J Daniels & Associates has more than 40 years’ experience and has helped 1,000’s of people successfully.

We advocate on our clients’ behalf with banks and creditors to stop home repossession, as well as helping to stop those in bankruptcy situations from being harassed by creditors. You shouldn’t have to live in constant fear, and that’s where we can help.

We aim to provide support services to those who do not know where to look, or who are confused about where to turn during the bankruptcy process. Our helpful advocates can assist you when you need it the most. We can give you confidential help, expert debt guidance and help you to find a personalised solution.

We don’t have any hidden fees, so you won’t have to worry about any nasty surprises. In addition to helping you to improve your financial situation, we can assist you in finding a solution to your mortgage issues. If you need help and support, give us a call today for your free consultation.

*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.

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