Repossession – how the process works

Here’s how the home repossession process works. But hopefully with our help it’s something you’ll avoid!

Home Repossession Stage 1: Notice from your lender

If you miss a first payment, your lender will write to confirm you are in arrears, asking for prompt payment within 7 days – or ask for a suitable proposal to avoid further action. A charge for this will be added to your loan.

If you fail to respond, they are legally entitled to commence legal proceedings as soon as you become 2 months in arrears. This is the start of repossession and you are at risk of losing your home. Your lender will normally write advising that a court order for possession has been applied for.

Home Repossession Stage 2: A Summons from the Court

Next, a judge will set a hearing date and the court will write to you requesting your attendance.

Home Repossession Stage 3: The Court Hearing

The judge will listen to you and your lender before deciding what will happen next. This decision will depend on your ability to repay the mortgage and set out suitable terms and a period in which to make the repayments.

The good news is that courts don’t like repossessing homes and will do everything possible to find a solution that’s acceptable to both you and your lender.

What could the judge do? He could allow you to stay in the property provided you keep to certain conditions (e.g. repaying the arrears in instalments, giving you sufficient time to sell the property yourself or deciding that you should be evicted).

If you agree to a suitable arrears repayment plan, the judge may issue a suspension order, putting the repossession order on hold for the time being. (Note: If you fail to keep this agreement, your lender can obtain an eviction order without further court hearings.)

However if it’s a first hearing, then it’s likely that the judge will require more information. So the case may be adjourned and a new hearing date set.

Suspension orders aren’t normally given during second hearings unless your circumstances have clearly changed e.g. you can clear your arrears, have found a buyer that can purchase your property in 4 weeks or have increased your income or changed employers.

Home Repossession Stage 4: The Possession Order

If the judge rules that you must vacate your home then the court order will set a date for you to leave. If you fail to leave by that date, your lender must apply for a warrant of execution so a court bailiff can legally remove you from your home.

Home Repossession Stage 5: The Eviction Order

The Eviction Order will set a final date for when you are to vacate your premises, normally within 14 to 28 days. Up to 6 weeks may be given if there are special circumstances for example you are elderly, have very young children or are sick.

If you fail to leave, the lender will return to court and ask for a warrant of execution. This will allow the court bailiffs to evict you. If you’re still in the property, you will be given 10 minutes to collect essential belongings.

They will then accompany you from your home and a locksmith will change all the locks. You will be entitled to a supervised visit approximately 14 days later to remove additional belongings. All the costs including eviction and estate agent fees will be added to your mortgage debt.

Don’t risk losing your home – talk to us now!

Losing your home is heartbreaking and stressful – for you and your family. But if you have a clean credit record and reasonable equity, it could be avoided altogether. So before things get worse, please give us a call. We might just be able to help!

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