Once you’ve missed three mortgage payments the lender have the rights to initiate a house repossession proceeding against the property.

You cannot afford to ignore this situation because it can result in losing your home, not to mention affecting future credit rating which would make it hard to future credit or mortgage. It is also a very distressing process of being physically removed from your own home, not to mention the financial loss that is involved.

When a property is repossessed by a bank there is no guarantee to the homeowner getting any money over and above the mortgage. If legal, court costs, bailiff costs, various interest payments and charges if added up can work out to be a big loss. Often bank repossessions are sold quickly at auction, which means the property will not achieve an open market value or anywhere near it. The equity in the home would be lost.