Understanding Property Repossession

Property repossession is common in the UK. Every year around 100,000 households lose their homes because they are unable to pay their mortgage. Below we have put together a summary of how the repossession process works and - more importantly - how you can prevent your home from being repossessed.

First Actions By Your Lender

When you fail to make a mortgage repayment to your lender, your mortgage account falls into arrears. Your lender will contact you by telephone or letter to chase the missed payment. If you are unable to pay or you continue to miss subsequent repayment demands, your lender has the right to start property repossession proceedings against you although they will normally give you the chance to work out a 'payment arrangement' with them first to clear outstanding arrears over a period of time.

Should your mortgage account be in arrears for between 3 and 6 months without any attempt on your part to clear the outstanding debt, then your lender is likely to pass your account over to their solicitors. The lender's solicitor will contact you by letter. They will demand that you repay the mortgage arrears in full within a set period of time. If no settlement is received, they will inform you that they have little choice but to begin repossession proceedings.

The Repossession

The lender's solicitor will issue house repossession proceedings on your home through the County Court. You will be informed by letter of the hearing date, at which time your case will be heard and the court will issue a judgement. If the lender has sufficient evidence that you can not repay your arrears, the court will issue a property repossession order. This will normally state that the lender has the right to repossess your home after 28 days should no payment settlement be reached. If, after 28 days you are still in your property and have not repaid your arrears, your lender will apply for an eviction order forcing you to leave your home.

Stopping Property Repossession

Even after the repossession order has been served by the court, it is not too late to stop a repossession from taking place. Contact us today to find out how we can help.

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