Housing repossessions have not been as high as many predicted at the outset of the financial markets crash and recession but it is still a worryingly high number and the whole process can be frightening and distressing for all involved.

When you apply for a loan to buy a house or for a substantial purchase you will be expected to provide your new home as collateral in the form of a mortgage to the lender. This means that they have the right to seize your home if you fail to keep up with the repayments on the loan in order to sell it and use the proceeds to pay off all or some of the loan. If there is a shortfall you will still be liable for the balance.

But the law has changed significantly in the past few years meaning that it is more difficult for a lender to repossess a home without going through the due process and trying to help you get back in control of your finances. Indeed many lenders would prefer to work with you rather than repossess since this is a time consuming and expensive process which may yield no better results than working with a willing borrower.

If you are experiencing problems making mortgage payments then you should contact the lender and try to work out a suitable repayment plan to help you with your finances. If, however, you have severe financial problems then it is likely that you will need professional help to get you through this harrowing period using various debt management plans such as an Individual Voluntary Arrangement.

However, if you are overdue in paying your mortgage loan by a few months then the lender may well instigate repossession proceedings against you. This means that you will receive a written letter stating what the lender intends to do and what it expects from you. This is a very important piece of communication and should not be ignored, It is your first real chance to formally respond on a supplied form of defence (N11M) stating what you can afford to pay and elaborate on your circumstances.

You may be summoned to appear in front of a district judge to plead your case. Provided your offer is reasonable then the judge may well rule in your favour. Again, whilst a frightening experience, these are normal people and will be looking for a compromise that is acceptable rather than a draconian repossession that puts you and your family out on the street.

If the court decides that there is little chance of you repaying then it may grant a repossession order. That means that you must surrender the house within 28 days of the order being granted. It may be possible for you to agree with the lender that you can sell the house on their behalf. This may yield everyone a better result since a private sale would typically fetch more than an auction for a repossessed property.

There is plenty of free advice available from such organisations as the Citizens Advice Bureau. Remember that it may be possible to get a bad credit unsecured loan to help you through a short term need.