Options To Stop House Repossession

Understanding the repossession process

Below is a quick guide below to help you understand why repossession takes place, what happens  at each stage of the repossession process and what you should do.

Why lenders take repossession proceedings

Your lender will have the right to issue repossession proceedings if you do not make the required payments under the terms of your mortgage contract. Normally two months of arrears is sufficient for lenders to commence action. However, it is not in the lenders interest to repossess and so will try and come to an arrangement so you can clear the arrears and they avoid taking proceedings.

If the lender is concerned about the level of arrears, or is not satisfied that you can repay them, they will take possession action in your local County Court. This enables them to take control of the property which they can sell ad recover the mortgage that is outstanding.

Repossession process and what you need to do

1. Reminders: The lender's Arrears Collection Department will write letters and perhaps phone you to chase missed payments. It's important that you let your lender know your position and try to propose a plan to clear the arrears over a period of time that they can agree upon.

2. The Solicitor's letter. If you have not paid the arrears for 4-6 months or more, then the lender will refer your account to their solicitors. They will write to you demanding full payment and warn you that repossession could take place if you do not bring your account up to date. Again, you need to make contact with the solicitor and try to come to agree to a plan to make ongoing payments to clear the arrears over time.

3. Commencement of Repossession proceedings. If you are in six months or more of arrears, then the solicitors will issue a County Court Repossession proceedings. The court will then set a hearing date. You should attend this hearing. You can get advice and guidance on how to prepare for a court hearing. Call us to get further advice. We may even be able to attend court with you to support you.

4. Court Order: at the hearing the court can:

• Adjourn the hearing - a new date will be given for your hearing (if for some reason the hearing cannot proceed due to your absence or the case needs further information or clarification).
• Dismiss or Adjourn Indefinitely – this is usually done only following full payment of  arrears.
• Issue an Order for Possession - this will give your lender the right to possession after a fixed period, typically 28 days. It's still not too late to act; we can help you with a quick property sale.
• Issue a Suspended Order for Possession – by paying the current monthly instalment and an agreed schedule of payments toward the arrears the Order is suspended. This order is very readily applied by the courts. This gives you a further chance, and also gives the lender security. If you default on the payments, the lender then has an immediate right to seek possession by issuing a Possession Warrant (see below).

5. Possession Warrant or a Notice of Eviction: The lender will apply to the court for a formal eviction if you have defaulted on a Suspended Order of Possession or are still in the property after the Order of Possession notice period has passed. You will then receive a date and time from the court by which you must leave. At the given time, the court bailiff, a representative of the lender and a locksmith will arrive to take formal possession of the property. Again, even up to the day of your eviction, it's still not too late to act. Just contact us by calling 07767843731 now and we may be able to help.