The possibility of repossession is enough  to frighten the most stable of households. The UK government would have you believe you are not alone, that you can get the help you need through a government program. Is this true? It may. Although the housing programs created by the UK government  in 2008 to help homeowners affected by the real estate crisis of 2008 have enjoyed mixed results, if you meet the program requirements and follow instructions, you could avoid a repossession. As of July 2011, over 330,000 in the United Kingdom have received help and advice that has helped them avoid repossession. The key is to create an action plan that fits your circumstances.

The UK government has divided housing programs into four main areas depending on the type of help they provide and the urgency of the situation. We can divide these programs by the situation you currently find yourself in.

Program 1. You are struggling to pay your mortgage. You still haven’t fallen behind in your payments, but you fear you may soon.

Program 2. You have missed some mortgage payments. Your lender still hasn’t threatened with repossession, but you fear he might soon.

Program 3. Your lender is threatening with repossession.

Program 4. You have received papers requesting you to go to court.

Each of these situations require a different action from you, as well as a different government housing program. This article will discuss program 1 and our next article will discuss programs two to four.

Program 1: You are struggling to pay your mortgage.

You are certainly not alone. The current financial situation has caused many families who were previously financially stable to struggle to meet their financial commitments. The problem is that the road from struggling to repossession can be mighty short if you don’t take measures sooner rather than later. These are the steps the UK government recommends you take.

Step 1. Do not ignore the situation. The ostrich technique of sinking your head in the ground will not work. Your financial problems will not go away just because you ignore them. Act quickly, act now and you will have a much better chance of keeping your home.

Step 2. Prepare a budget. Find out how much you owe and compare it to your income and your fixed expenses. If you need help preparing a budget or getting a handle on your finances, contact an approved independent advice agency.

Step 3. Speak to your lender. This is the number one mistake borrowers make: not contacting their lenders. If you contact your lender while you are in the struggling period , well before you miss a payment, you give the message you are a responsible borrower who is serious about finding a solution for their short term financial problems. Ignore your lender and they will fear the worst and go on the offensive. The UK law on repossession forces lenders to follow pre-repossession proceedings and use repossession as a last resort. The fact you contact them and ask for assistance will support your case if you do have to go to court.

Step 4. Apply for a government sponsored support program. There are two main options: the support for mortgage interest program and the homeowners mortgage support program. Mention these programs to your lender when you talk.

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