Stop House Repossession: A Guide for Irish Homeowners
What is House Repossession?
The Repossession Process in Ireland
Mortgage Arrears: The repossession process typically starts when a homeowner falls into arrears (missing mortgage payments).
Legal Action: The lender will notify the homeowner that they are taking legal action to repossess the property. However, before this happens, they are required to follow certain steps to offer the homeowner a chance to resolve the issue.
Court Proceedings: If no agreement is reached, the case will go to court. The lender will request an order for possession, and if granted, the house can be repossessed.
How to Stop House Repossession
Stopping the repossession of your home is possible, but it requires quick action. Below are several strategies you can use to protect your home:
Negotiate with Your Lender: Lenders in Ireland are required to follow the Central Bank’s Code of Conduct on Mortgage Arrears (CCMA). This code requires lenders to engage with borrowers and explore all possible alternatives to repossession. Start by contacting your lender to discuss restructuring your mortgage or coming to a temporary repayment arrangement.
Seek Professional Advice: If you’re unsure of your rights or need help negotiating with your lender, consider seeking advice from professionals. Organizations like MABS (Money Advice and Budgeting Service) offer free advice and support to individuals facing repossession.
Apply for a Mortgage-to-Rent Scheme: If you are at risk of losing your home, you might be eligible for the Mortgage-to-Rent (MTR) scheme, which allows you to stay in your home as a tenant while the property is transferred to a housing association.
Consider Selling Your House: In some cases, selling your house before repossession can be the best option. By selling, you can pay off your debt and avoid the negative impact repossession has on your credit rating. Selling also gives you control over the sale price, unlike in a forced sale situation.
Reasons to Avoid House Repossession
There are several reasons why homeowners should avoid repossession if possible:
Credit Impact: A repossession can severely damage your credit rating, making it difficult to get loans or credit in the future.
Emotional Stress: Losing your home is not only a financial burden but an emotional one as well. Preventing repossession can help you retain stability and control over your life.
Forced Sale: If the lender takes possession of your home, they will sell it at auction, often for a price far below market value, leaving you with less money to pay off your debt.
Alternatives to Repossession
There are various alternatives to repossession that Irish homeowners can consider:
Mortgage Restructuring: Many lenders are willing to restructure your mortgage to make payments more manageable. This could involve extending the term, switching to interest-only payments for a time, or reducing monthly payments.
Voluntary Sale: Selling your home voluntarily allows you to settle your debt and avoid the long-term consequences of repossession.
Debt Settlement Agreement: A debt settlement agreement allows you to pay off part of your debt over a specified period. This may be an option if your mortgage payments are no longer affordable.
What to Do if Court Proceedings Have Already Begun
If the repossession process has already begun and your case is heading to court, don’t lose hope. You still have options:
Attend the Hearing: It’s essential to attend the repossession hearing to present your case. Missing the hearing could result in an automatic order for repossession.
Seek Legal Representation: Get a solicitor who specializes in mortgage arrears and repossession cases. They can advise you on how to present your case and help you explore further options.
Apply for a Personal Insolvency Arrangement (PIA): A PIA is a formal agreement between you and your creditors that can include restructuring your mortgage. It’s an alternative to bankruptcy and can help you retain ownership of your home.
Why Choose KPS Property Services?
At KPS Property Services, we understand how stressful the threat of repossession can be. Our expert team is here to help you explore your options and take control of your financial future.
Expert Guidance: Our property specialists can assess your situation and provide personalized advice on the best course of action to stop repossession.
Stress-Free Sales: If selling your home is the best option, we can help facilitate a quick, hassle-free sale, allowing you to settle your debts and move on.
Tailored Solutions: We offer flexible solutions tailored to your unique situation, whether that’s mortgage restructuring, negotiation with your lender, or finding alternative housing options.
Stopping house repossession is possible if you take action early and explore all the available options. Whether it’s negotiating with your lender, seeking professional advice, or considering a voluntary sale, you have choices that can help you protect your home. KPS Property Services is here to guide you through this challenging time and ensure that you make the best decision for your financial future.
