Stage 1 of Repossession Process: Notice from your Lender
Once you have missed the 1st payment the lender will write to you confirming that you are in arrears. In the letter they will ask you to make a prompt payment within 7 days to clear the arrears or ask you to make a suitable proposal to avoid further action. The charge for missing a payment and writing to you will be added to your loan.
If you fail to contact your lender, pay them back or cannot offer a suitable repayment plan then they are legally entitled to commence legal proceedings as long as you are 2 months in arrears. This would be the beginning of the
repossession process and you are then at risk of losing your home. Your lender will normally write to you advising that a court order for possession has been applied for.
Actions Call your lender immediately, take a record of who you speak to and note the date and then follow this up in writing. You may be able to rely on these notes later in court, but should take independent legal advice over this. Before you attend the Court hearing sit down in a quiet room with some pen and paper or a computer if you have one. Calculate all of your essential monthly outgoings and income and work out how much you can afford to repay the lenders.
Stage 2 of Repossession Process: A Summons from the Court
If you have been unable to pay back the arrears and a possession order has been applied for by your lender, a judge will set a hearing date and the court will write to you requesting your attendance.
Actions As soon as you receive this court summons you are advised to obtain advice immediately about your options and what to do next. Be sure to reply to the court if you do not want to damage your case further. You should find a solicitor to represent you in court and to develop your defence for the hearing. Make sure you attend. Ask you local Citizens Advice Bureau (CAB) to check if the notices served on you are correct and also in your entitlement for any Housing benefits and Legal Aid. If there is an error with the notices served then there is a strong chance the case for repossession will be void. Click this link to find your Local CAB office and at bottom of the page enter your postcode and click enter http://www.citizensadvice.org.uk/index/getadvice.htm. Feel free to contact any of the companies on the useful contacts page towards the end of this report.
Stage 3 of Repossession Process: The Court Hearing
During the hearing the judge will hear from you and the lender and come to a decision about what should happen next. This decision will depend on whether you can repay the mortgage and if the terms and period to make the repayments are acceptable. The courts do not like to repossessing properties so will try all that is possible to find a solution for you and the lender.
Some of the options open to the judge include: allowing you to stay in the property provided you keep to certain conditions, such as repaying the arrears in instalments; giving you time to sell your property to avoid repossession or deciding that you should be evicted.
Actions remember your repayment plan and what you can comfortably afford.
Hopefully you will be able to agree a suitable arrears repayment plan, so that the Judge can issue a suspension order, which means that the repossession order is on hold for the short term.
If you do not maintain the re payment schedule, then the lender can obtain an eviction order without further court hearings.
For a first hearing it is more than likely that more information will be required to make a decision so the case may be adjourned with a new hearing date set.
During the next hearing a suspended order will not normally be given unless there is a clear change of circumstance i.e. you can clear the arrears or have found a buyer that can purchase your property in 4 weeks or have increased your income/changed employers.
Stage 4 of Repossession Process: The Possession Order
If the judge decides that you have to leave your home, the court order will set a date for you to leave. If you have not left by that date, your lender must apply for a warrant of execution so that a court bailiff can legally remove you from your home.
Stage 5 of Repossession Process: Eviction Order
The Judge will order that you be evicted from your home if you cannot repay the arrears and ongoing mortgage payments. This order will set a final date for when you are to vacate your premises and normally this is within 14 and 28 days. Up to 6 weeks may be given if there is special circumstances i.e.
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You are elderly |
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Very young children living at home |
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Suffering an illness |
If you don't leave, the landlord will return to court and ask can ask for a warrant (of execution). This will allow the court bailiffs will be able to evict you. Although they cannot use violence to remove you they can use reasonable force in order to be able to gain access to the property and even ask police to assist in maintaining a peaceful eviction. If you are still in the property, they will give you 10 minutes to collect some essential belongings, then they will accompany you from your home and a locksmith will change all the locks on your home. You will be entitled to a supervised visit approximately 14 days later to remove your belongings. All the costs including eviction and estate agent fees will be added onto your mortgage debt.
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