Understanding the repossession process
We've put together a quick guide below to help you understand why repossession takes
place, what will happen during each stage of the repossession process and what you
should do.
Why lenders take proceedings
Under the terms of your mortgage contract, your lender will have the right to issue
repossession proceedings if you do not make your required payments. Normally two
months of arrears is sufficient for a lender to take action. In reality, lenders
will try to come to an arrangement to clear the arrears and avoid taking proceedings.
If the lender has concerns about the level of the arrears, or is not satisfied with
your proposals to repay them, they will take possession action in your local County
Court. They do this so that they can take control of your property, sell it and
recover the outstanding mortgage balance.
The repossession process and what you should do
1. Payment reminders: initially your lender will get their Arrears Collection Department
to write letters and perhaps telephone to chase missed payments. It is important
to keep your lender informed of your position and to try to come to an agreement
to clear the arrears over a period of time.
2. Solicitor's letter: if the arrears are unpaid for 4-6 months or more, your lender
will refer your account to their solicitors. They will write to you demanding full
payment and warn that repossession could take place if you do not bring your account
up to date. Again, make contact with the solicitors and try to come to an arrangement
to make ongoing payments to clear the arrears over time.
3. Start of repossession proceedings: often after six months or more of arrears,
the solicitors will issue County Court Repossession proceedings. The court will
set a hearing date. You should attend. See How to prepare for a court hearing for
detailed guidance.
4. Court Order: at a possession hearing the court can make a number of decisions.
- Adjourn - you will be given a new date for your hearing (if for some reason the
hearing cannot proceed due to absence or your case needs further information or
clarification).
- Dismiss or Adjourn Indefinitely - usually only following full payment of the arrears.
- Order for Possession - this will give your lender 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.
- Suspended Order for Possession - the Order is suspended upon payment of the current
monthly instalment, and an agreed amount towards the arrears. This order is very
readily applied by the courts. It gives you a further chance, and also gives the
lender security. If payment is defaulted upon, the lender has an immediate right
to seek possession by Possession Warrant (see below).
5. Possession Warrant or Notice of Eviction: if you have defaulted on a Suspended
Order of Possession or are still in your property after your Order of Possession
notice period has passed, the lender will apply to the court for formal eviction.
You will receive a date and time from the court when you must leave. The court bailiff
will arrive with a representative of the lender and a locksmith to take formal possession
of the property. Again, even up to the day of your eviction, it's still not too
late to act. A Quick Sale can help you.
Completely satisfied with all aspects of the service received. Rep was courtious and supportive throughout. Non judgemental and offered additional practical advice and support. Made a very hard and traumatic time a lot easier to cope with and get through
LK. Otley
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