The consequences of falling behind on mortgage payments can be devastating. In this house repossession guide, we will look at different stages of property repossession and offer advice that should help you steer clear of the greatest pitfalls.
What Causes Repossession To Happen?
There are a number of reasons why repossession might be a possibility. Every situation is different, and every situation is different in complexity. Essentially, the problem is that the property owner falls into arrears with the mortgage or with any other secured loan. In case you fail to adhere to your lender’s repayment plan, you can accumulate arrears over time.
If you have an urgent need for our service to stop a pending repossession then please get in touch here.
Arrears Often Happen Because Of A Change In The Following;
- A divorce or bereavement
- Sickness or an accident leaving you with a significant injury.
- Redundancy or reduced hours at work
Essentially, the above changes all result in financial difficulties which result in missed mortgage payments. Other reasons for mortgage arrears include;
- The breaking of conditions of a lease, ie ground rent payments being missed
- Different stages in the house repossession process
Repossession isn’t something that occurs overnight, but there is a very clear process involved. The steps are as follows;
Your Mortgage Lender Will Contact You
In order to be fair to you as the property owner, the lender will contact you to let you know about the problem and ask you what you can do. After not receiving your response, they will write to you again, warning you that court proceedings will begin if you do not respond, or if there are any issues with your reply. Your lender may be willing to negotiate with you at this stage.
Your Mortgage Lender Applies For A Possession Order
In order to proceed to the next stage, the lender must apply for a repossession order with the local county court. When they do this, the lender has to explain why they would like to reclaim your home.
The Court Becomes Involved
You will receive a letter explaining the lender’s position. The court will give you a hearing date and a copy of the lender’s claim form. You will also receive a defense form you must complete.
The County Court Judge Hears Your Case
The County Court will hear the case. At this stage, the judge will look at the evidence and hear both you and the lender. He will carefully listen to the facts and then reach a decision.
Repossessions will typically take place quite quickly if the judge orders them. The usual time frame for repossessions is 28 days. In certain cases, the court can extend this to 56 days. It is also possible that you will be responsible for the lender’s legal fees if the judge finds this appropriate. During this process, the lender requests a bailiff’s warrant from the court. If they do not have one, you cannot be evicted.
How Long Does The Repossession Process Take?
It usually takes around 6 to 8 months from the time a lender repossesses the house, until it is finally sold and the debt is settled. However, there are many factors that may affect how long it takes. Sometimes, it takes over a year, but that’s because the property is complicated or takes longer to sell.
You may have to wait longer for your court date if the court has many mortgage-related cases.
Banks and other lenders are likely to take time to pursue their money if financial market conditions are good. This could lead to a significant slowdown.
By showing that you are cooperating with your lender and trying to get your finances in order, you can extend the time period.
How To Stop Repossession From Happening
The courts and lenders view repossessions as a last resort. However, if things continue to progress too far, it may become the only option. Making sure you take care of a few things quickly is the best way to help a repossession from occurring or creating a strong case in Court – these are as follows;
Could You Sell Your House Quickly?
Although selling your home on the open market can often take many months, there are ways you can shorten this process dramatically, such as selling to a “sell your home fast” company, such as Hamilton Paige.
Because we are specialists at buying properties under financial pressure, we can and will arrange for the the following;
- The valuation of the house
- Cover the cost of selling
- Speak to the lender and/or attend court hearing
- Exchange contracts with 48 – 72 hours if required
- Pay you directly
NOTICE: This information is not intended to be legal advice. If you are going through a repossession, you need to consult a legal expert before making any decisions. Hamilton Paige can help you in court should you wish to sell to us and help prevent a repossession order being granted.
We Help Property Owners By;
Solving Financial Difficulties
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MORTGAGE ARREARS: If you have an urgent financial situation which may lead to the sale or repossession of your property, we will work with you to solve or contain the problem, as this buys you time to consider your options. Our primary goal is to keep you and your family at home. READ MORE.
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