How to Cope When Your House is at Risk of Repossession

Last Updated: July 30, 2025 by Michael Kahn. Published: June 5, 2025.

Although we hope this is something that you never have to encounter in life, the threat of a house repossession is a very real scenario for some unfortunate households. In a world where security is everything, the potential to lose the roof over your head can make you feel like your world is crumbling through your fingers.

Table of Contents

• Don’t stick your head in the sand
• Find a way to sell up quickly 

If you happen to be experiencing this right now, first things first, take a deep breath. We’re serious. Don’t read any further until you’ve done it, and you’re able to think about the next rational steps. The situation may be heart-breaking, but there are ways and means of dealing with it and finding an outcome that takes a positive from a negative.

Don’t stick your head in the sand

Firstly, the worst thing you can do is to pretend it’s not happening. It can be tempting to ignore the scary letters and phone calls threatening action. But trust us, burying your head in the sand is only going to make those calls grow louder.

If your main issue is falling behind on the mortgage payments, talk to your lender. They would rather find a solution than facilitate the repossession process. It could be a payment holiday or an extension of your term to lower monthly repayments. Or even switching to an interest-only deal for the time being instead.

Consider talking to debt advisors and any debt charities that may be able to help. You may also be able to rent out one of your rooms. If you have the space, you could consider becoming a live-in landlord to help cover the shortfall in your mortgage.

Find a way to sell up quickly

If none of the above options come to fruition, there’s always the potential to sell up and move on before a repossession can actually happen. Don’t beat yourself up if this happens to be your last resort. It doesn’t mean you’re a failure. As a matter of fact, knowing when to cut your losses is proof you’re a smart cookie.

The problem with selling via a real estate agent is that most conventional deals can take several months for funds to clear. If you only have a matter of weeks to get things sorted, a cash buyer could be an option. There are “we buy any house” portals for cash sales, that can complete on property purchases of any age or condition in as little as seven working days.

Their cash offer may not be as much as you could get on the open market, but it could be enough to pay off your outstanding mortgage. You might even have enough left to put down on another property in the future.

There’s no denying that the threat of losing your home – or being at risk of it – is a gut-wrenching experience. Repossession won’t define your life, though. Many people come out of sticky financial situations like this and emerge from them stronger and wiser than ever before. Keep your head up and put your best foot forward.