Step one of the house repossession process

If you miss two or more mortgage repayments, your mortgage lender is legally entitled to kick off the house repossession process. But before they call on the legal system, their internal debt management department will get in touch.

They’ll try their best to advise you, finding the cause of the problem and suggesting practical solutions. If they can help, they will; repossessing your home is a last resort. Keep all the correspondence about any new agreement you reach, and make detailed notes. If things don’t get better, you might need them later.

Step two

After a few more months of unpaid arrears your lender, or more likely their solicitor, will write you a letter. This will warn you that they’re poised to begin the house repossession process by taking you to court. At the same time they can   apply for a repossession order.

Step three

The court will send you a summons. This letter tells you the date of your hearing.

Step four

If you don’t turn up and the home repossession process goes through without opposition, the judge has to award a repossession order (or notice) against you.

If you turn up, you’ll get a fair say. The judge will hear all the evidence from you and your mortgage lender before deciding what to do, and there are several possible outcomes:

• House repossession process case dismissed. The repossession stops because you have paid your arrears.

• Case Adjourned. If the case can’t be heard that day, a new date will be set.

• Suspended Possession Order. If you’ve agreed to make your usual monthly mortgage repayments plus something towards the arrears and the judge is sure you can afford it, he or she will aim to suspend the order.  If you default, your lender can force possession or evict you without another hearing.

• Repossession Order. This lets your lender repossess your home, usually within 28 days; more likely if the judge discovers you’ve made no effort to put things right, or feels you have no chance of managing the repayment schedule.

Step five

The final part of the house repossession process. If your suspended repossession order fails or you’re still living in the property after the order date, your lender can apply for a warrant of eviction notice. This is a letter reminding you that you are legally obliged to leave. You’ll have between seven and fourteen days before they send the bailiff in to remove you.

This is a guide to the several steps involved with house repossession, the best place to start asking further questions is from your lender. Your lender may offer a clear way out of repossession but always read the fine print.

What have you done to help stop house repossession? Leave your comment below.

The first time you go to court, you’ll find out whether or not your lender has succeeded in taking out a house repossession notice, or house repossession order, on your home. Luckily, courts rarely grant repossession orders on the first hearing however it does happen especially if you are not in court. The law usually feels that granting a repossession order straight off is too harsh.  So it is usually used as a last resort, in cases where there’s no chance the borrower can put things right.

House repossession notice: Repossession Order or Suspended Order?

In most cases the judge will grant a suspended order.

• If you’ve been given a suspended repossession order, you can stay in your home but you must abide by the court’s ruling. This tends to involve repaying your arrears on time, in full, over an agreed timescale;

• If the court feels you are unlikely to repay your arrears in a reasonable amount of time, then a repossession notice is the most likely outcome. In this case the court will give you a date on which, by law, you have to leave the property;

Either way, the sooner you take action the better chance you have of avoiding actual repossession. The process below gives you plenty of opportunities to put things right.

The Repossession Notice process explained

House repossession notice Payment Reminder

Repossessions are bad publicity, and your bank or financial lender will be keen to continue a good relationship with you. After all, you’re a customer. Most mortgage lenders will contact you via their internal arrears collection unit when they notice a missed payment. If not after one missed payment, they’ll be in touch after two.

Solicitor’s Letter

If you don’t repay your arrears, or ignore their attempts to contact you, they’ll get in touch via their solicitor. The letter will demand full, immediate payment and it’ll warn you about the risk of repossession.

Proceedings for House Repossession

The solicitor will issue house repossession notice proceedings with the County Court. The Court gets details of your arrears then sets a hearing date.

Court Order

• If there’s information outstanding or you don’t turn up, the hearing is adjourned and the court will set a new date.

• If you have repaid your arrears completely before the hearing, it’ll be dismissed or indefinitely adjourned.
• If you agree a plan to repay your arrears the Court will probably be happy to grant a suspended possession order.

• Otherwise, the court will make a house repossession order or house repossession notice. This means the lender can take repossession of the property, generally just 28 days later.

For more information please contact a local solicitor, you may be able to have a no obligation chat about the process which may help you to start organising your fight and finances.

What happens with suspended repossession?

A ‘Suspended Repossession Order’ is a legal arrangement between you and your lender following your repossession court hearing. It means that the repossession order has been suspended or delayed. If a judge believes your mortgage arrears can be resolved, they’ll try to award you a suspended repossession instead of a normal repossession order.

A suspended repossession order lets you stay in your house. But you have to agree to certain conditions and it is only usually acceptable if you’ve already found a buyer and are just waiting to complete the sale.

The conditions of suspended repossession

1.    You make your usual monthly mortgage payments in full.

2.    You pay an additional monthly amount towards your arrears. Most mortgage lenders will ask for the arrears to be paid off within a strict time frame, say three years. But the judge makes the final decision based on your financial circumstances. Occasionally a judge lets a person spread their arrears across the whole of the remaining mortgage. But don’t bank on it… it is highly unusual.

3.    You agree to sell your home within a set time and repay the mortgage in full.

For more details visit whereonearthgroup.com and cleanslatemortgages.co.uk

Only commit to repay what you can afford

Be careful not to commit yourself to unmanageable repayments, or your suspended repossession order will fail. It is vital that you stick to the terms of the order. If you don’t, things get scary; you can be evicted immediately without another court hearing.

Abide by the Terms and Conditions

Suspended repossession lets you stay in your home as long as you stick to the terms and conditions, which are explained clearly in the court order. If they’re not clear or you find them confusing, get professional advice.

What to do if you have problems?

If you think you might have problems with your suspended repossession order, contact your mortgage lender for advice straight away. Burying your head in the sand can lead to a swift and merciless eviction!

Changing the conditions of a suspended home repossession

If you need to change the conditions of a suspended repossession order, for example if you’ve lost your job, you do so via the court by paying a fee. But if you’re on benefits or have a low income, you can often get help with the costs.

CashForMyHouse.co.uk – UK Govenerment to stop House Repossessions.