When you owe alot of money to a creditor for a property or item and cannot make the debts a last resort to get some money back that the creditor can and sometimes takes is to repossess the property and sell it on for as much as they can get. Your home can be repossessed by your main mortgage creditor or the company who gave you a second loan to secure your home.
- A company or person files a bankruptcy order against you.
- A compulsory purchase order is made to buy your own home by a local council or public body.
- You break the conditions of your lease like not paying rent or service charges.
If you get your home repossessed it will stay on your credit report for 7 years negatively effecting your score, you will still be able to get high interest loans but will be excluded from the best rates while this affects you and potentially after depending on how long it lowers your credit score.