Stop Reposession

What is Repossession?

When you take out a mortgage with any lender – be it a building society or bank – they will protect their interests by registering what is known as a “legal charge” against the property at Land Registry.


They do this to ensure that the lender’s loan is satisfied first when you sell your property and they are the first creditor to be paid if you have other loans.


The “legal charge” or “Mortgage Deed” is a document which states that if you do not keep up with your payments on the loan, the lender can “repossess” your property and sell it to pay back the loan. Typically a lender will instruct legal proceedings, if you miss more than two payments, to recover the monies owed.


There are several stages to stop repossession that you will have to go through before you are provided with an eviction date. If payments are not satisfied the lender will instruct solicitors to apply to the courts for a repossession order to repossess the property.


Once the property is repossessed you will be “evicted” and then sadly left homeless. The lender will look to sell the property for a quick sale, at a greatly reduced price and any monies left over are then repaid to.


However, Courts do not like to foreclose on property and it may be better for you to sell the house quickly.

What are the Stages?

• 1-4 months – Payment Reminders
  Your lender’s Arrears Collection Department will contact you if you have missed several payments, and at this time it may be possible to arrange a way to clear your arrears over a certain period of time, if you try to explain to them the reasons why you have not paid your mortgage.
• 4-6 months – Letter from Solicitors
  If your arrears are 4-6 months down the line your account will be handed over to the lender’s solicitors in order for them to chase the monies which you owe.
• 6 months+ - Court Proceedings
  You will receive a letter from the court known as a Summons and it is very important that you reply to this as failure to reply may harm your case. The Hearing will then take place where the judge will listen to evidence from both you and the lender and the decision is then made to:
• a. adjourn (postpone)
• b. strike (cancel)
• c. an agreement is made where you can stay in your home if you pay instalments on the arrears.
• d. give you time to sell your property to avoid repossession, or
• e. eviction.

If the court decides that repossession is the only alternative a court order will be set for a particular date by which you are due to leave the property. If you have not left by that date then a bailiff’s warrant can be obtained and you will be removed from your home.

There is an option known as sell and rent back which will allow you to stay in your property even after you have sold it, and we can offer this opportunity to you.