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Home Repossession Process

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The stages of the house repossession process in the UK

Stage 1

As sooon as you've missed two or more mortgage repayments, your mortgage lender is legally able to start the repossession process for your house.  Before they call on the legal system they will get in touch themselves, usually this won't be through anyone at your local branch that you deal wtih regularly it will be through their debt management department.

Banks and other mortgage lenders are legally bound to treat you fairly and government pressure means they must be seen to do what they can to help you avoid repossession, they should offer advice and options to help you avoid repossession.  The options your lender offers you vary depending on your exact situation but they may allow you to switch to interest only payments for a period of time, if you have equity in your home they might allow you to add the missed payments to the total left to repay, they may allow you to extend the length of your mortgage, or they may offer some other type of short term finance to deal with your problems.

There are two important things to do no matter what options your lender offers.

  1. Make sure you keep notes and request documentation of all offers they make, keep all correspondence so you have a record of what's been discussed in case you need to rely on it later
  2. Seek independent financial advice and think very carefully about what's offered.  In some cases a short term fix may note solve your problems for good, but just create a bigger problem down the track – you shouldn't enter into an agreement with your bank unless you're sure it's right for you and that you can meet your new commitments.

Stage 2

If a few more months pass of unpaid arrears to your mortgage letter, you will get a letter from them or more likely from their solicitor.  The letter will warn you that they're about to begin the repossession process for your home by taking you to court.  At this time your lender can apply for a repossession order.

Stage 3

You will get a summons from the court.  This will give you details of your hearing.

Stage 4

If you don't turn up to court for the hearing to represent yourself or have professional representation then the repossession process will go through without any opposition.  In this situation the judge must award the repossession order (or notice) against you.

If you do turn up to court, then you will have a chance to present your side of the story.  At this point you should consider some sort of legal representation, your bank or mortgage lender will have a solicitor acting for them who is familiar with the process – hopefully this is something you've never had to face before and so it would be a very good idea to seek help from your own solicitor to make sure you're treated fairly.  The judge will hear evidence from both sides and then make a decision about what happens next, there are a number of possible outcomes:

  • Repossession Order.  This means your lender can repossess your home, usually within 28 days and is likely to happen if the judge believes you've made no effort to put the situation right, or if you have no chance of managing a reasonable repayment schedule.
  • Suspended Repossession Order.  If you've agreed that you will make all your normal monthly mortgage payments from this point on and you will pay something towards clearing the arrears and the judge is sure you can afford it, then the judge may suspend the repossession order.  In this case it's important that you do not default again, if you do miss another payment your mortgage lenger can force possession of your house or evict you without another court hearing.
  • Case Adjourned.  If the case can't be heard for some reason on the date set, then a new date will be chosen.
  • Case Dismissed.  The house repossession process can be stop and the case dismissed if you have paid all your arrears and brought your mortgage back up to date.

Stage 5

This is the final part of the house repossession proccess.  If the court judgement has gone against you and they've awarded a repossession order against you or you've missed another payment after being granted a suspended repossession order then your lender can apply for a warrant of eviction notice.  This is a letter telling you that you are legally obliged to leave your home.  In most cases you'll have between 7 and 14 days to leave before a bailiff is sent to physically remove you.

 

There are several steps to the house repossession process and this guide is an overview of what happens.  The most important thing is to act quickly as soon as you get behind on payments, talk to your lender to see if they will offer a way out and make sure it is something that you are comfortable with and you can meet your financial commitments in the future.  Make sure you understand any offer the lender makes and read the fine print so you don't encounter problems later on.

If you are in trouble seek help at the start to try and avoid the social and financial stigma of repossession.  You should consider selling your house yourself if you don't have options to meet your monthly repayments – you are likely to achieve a better price than the property will get if it's sold as a repossession and you avoid the long term damage to your credit file.


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