As the number of home owners at risk of repossession rises, what options are available?

With repossession figures rising, it comes as no surprise that the number of people suffering financial difficulties is becoming more widespread.



Currently, if you just can't seem to make ends meet and are having difficulty in managing your finances the situation could potentially worsen, as recent interest rate increases from the Bank of England are putting more pressure on people's finances.



Recent reports show that the number of repossession orders has reached their highest point since 2001, showing that the threat of repossession has become a reality for those who are suffering with mortgage arrears.



The repossession process can be a frightening time, as many homeowners are in the dark about what the process involves, what to expect, and the options available to them to resolve the situation. For example, the repossession process can begin with lenders taking action on as little as two months' arrears on a mortgage. In most cases a solution can be agreed upon before further proceedings occur, but what happens when an agreement cannot be made?

When a lender takes proceedings to a stage beyond the issuing of reminder letters and the period of arrears reaches four to six months, the lender's solicitor becomes involved by demanding payment and issuing a warning of repossession. The opportunity for an agreement to be made is available at this stage, with a possible compromise on payments arranged to ensure the arrears are paid.



Should the arrears period reach six months or over, and an agreement has not been made regarding the payments due, the solicitor will issue a County Court Repossession Proceeding with a hearing date. An initial hearing can be postponed for further information but, usually, after a hearing the lender is awarded an order for possession or a suspended order for possession, resulting in the homeowner being given a date and time to clear the arrears or, if the arrears remain, for the court to set an eviction.



Once a homeowner reaches this stage the future can seem bleak. Having gone through the stress of hearings and letters, many owners may feel there is no way out and may wait for the eviction date not knowing what exactly they can do. Given the current financial climate, and with household debt increasing, many will find themselves under threat of losing their homes and in need of a solution. Thankfully, there are options available including solutions tailored to meet individuals' needs.



Many have chosen to sell their homes to clear the outstanding debt, which in itself can be a stressful and drawn out process. Unless a sale is agreed very quickly the property will be repossessed. By far the simplest option open to homeowners is to contact a specialist company who would ensure that the property can be sold quickly - thereby ensuring repossession is effectively halted before it begins. Some companies offer to purchase a property with the option to rent or buy back the property: ensuring that families can keep a roof over their heads through this difficult time, while still retaining the possibility of once again owning their home.



It is never too late to find help and prevent repossession, and given the increasing number of home owners affected, there has never been a more important time to look at your options.



Andrew Regan is an online journalist who enjoys socialising at his local Edinburgh rugby club.