What is repossession? When you miss mortgage repayments for some time your lender will apply to the court to take possession of your property. If they are successful, the property is sold and proceeds of the sale are offset against the outstanding balance owed. However, you may still owe the lender money for any shortfall (as well as owing other creditors) so you should explore all alternatives to repossession first. [embed id="embed_2"] What is voluntary surrender? Voluntary surrender is when you transfer ownership of your home to your lender for them to sell. Do not voluntarily surrender your home without seeking professional advice first. If your house is sold for less than the amount you owe, you will still owe your lender the balance. It’s important to note that any borrower in fear of losing their home should make themselves familiar with the legislative protections available to them. Under the Land and Conveyancing Reform Law 2013, for example, the court can postpone repossession proceedings for up to two months, to allow the borrower to explore the possibility of putting in place a PIA. A PIA, or Personal Insolvency Arrangement, is a court-approved agreement between you and your creditor. It allows for the restructuring and write-off of debt, with the aim of keeping you in your home where possible. You can access the services of a Personal Insolvency Practitioner (PIP) for free via the Abhaile scheme here. [embed id="embed_1"]

It can be tempting to ignore letters and phonecalls from your lender, however in the long run it’s best to keep communicating with them. Lenders are obligated to engage with borrowers who are in arrears and repossession should always be a last resort. [embed id="embed_1"]

Leaving the property and giving back the keys is not actually a solution, as you remain the legal owner of the property and are still liable to repay the mortgage until either repossession; voluntary sale or voluntary surrender of your property is completed. [embed id="embed_1"]

If you have received a date to appear in court about a repossession, be sure to attend. Otherwise your side of the story won’t be heard and you could miss an opportunity to have your case resolved. Plus in most cases, attending court and showing that you have made some effort to make repayments will reflect favourably on you. [embed id="embed_1"]

Did you know that legislation exists which allows the court to postpone repossession proceedings for up to two months to allow a person to explore the possibility of putting a debt solution in place such as a PIA. A list of Personal Insolvency Practitioners participating in the scheme is available here. There is a whole range of solutions available for people experiencing mortgage difficulties. To date approximately 90% of people who entered into a Personal Insolvency Arrangement have kept their home. So contact a PIP today and you’ll soon find the right solution to get you back on track financially. [embed id="embed_1"]