Repossession

[Myriad2112]

I have recently been made redundant and will no doubt soon be struggling with my mortgage. Assuming that I miss the next few months mortgage repayments and that the building society repossessed my home. Could someone tell me if they at least have to give me back the 10 years payments that I have already made or do I lose it all?

[ubasses]

Firstly don't panic, if you have difficulty paying go straight to the Mortgage Company to discuss, they are more likely to help you that way. Look at interest only for a short period, or extending the term with a promise to catch up in the future. If the worst case scenario happened, the property would be sold and they would keep the amount outstanding on the mortgage plus any fees involved and you would get any equity remaining.
If in negative equity unfortunately you would still owe them any outstanding debt. Mortgage Companies do not like to repossess and you should be able to come to some arrangement.

[Myriad2112]

Thank You Ubasses, I feel better already. As far as I'm aware my house is worth double what I paid for it. I ws just worried that if I couldn't find a job quite quickly that I woulld end up with nothing.

[ladybirder]

Just a suggestion Myriad, but if you have the room you could think of taking a lodger to help with your mortgage payments while you look for another job.

[MASS1961]

The most important thing is to contact them asap to explain your situation. In my experience they will help all they can.

[ummmm]

What about taking a mortgage holiday?

[Canary42]

If it's worth double what you paid for it, and you're ten years into it, you shouldn't have any trouble making an arrangement with the Mortgage Company I wouldn't have thought.

[tonywiltshire]

Good advice from most people. In these days of depressed house prices, if you are not in certain parts of London, the mortgage provider may not be keen to repossess the property and then have the difficulty of selling it (they would deduct their loan and all charges and pay you the balance) they may well be more interested in working with you to overcome this difficulty. It is not a quick process and remember the mortgage provider must first go to court. Speak to your mortgage provider as soon as possible and remember all is not lost; many people are in this position.