Repossession - What Can I do to Stop It?
Your home is probably your biggest single asset as well as a property in which you have invested psychologically. Maintaining a family home is a top priority and, therefore, when debts start to mount or income is under pressure, the mortgage payments should be amongst the first ones to be paid.
The worst thing that can happen is that you go into denial and start to ignore letters and phone calls from your lender or their solicitor. You simply cannot afford to let the situation get out of control and waste time by doing nothing. Action is better than lethargy since the end result could be the loss of your home.
Your lender must follow a prescribed course of action if they wish to repossess your home.
The first contact will probably be a letter from your lender stating that you have missed payments and asking what action you intend to take to bring the account back up to date. They will almost certainly invite you to contact them to discuss your financial situation and suggest ways that you might get back up to date.
If your proposals to get back up to date are not acceptable or, even worse, you get further into arrears by missing more payments, then you will receive another letter from your lenders outlining what action they will take if you fail to get the account up to date.
At this stage, you really should be in dialogue with your lender since once solicitors get involved, you have less room to negotiate or manoeuvre.
If you fail to act, you will receive a letter from the lenders' solicitors giving you seven days to get up to date or make firm plans for doing so. At this stage, your lender can initiate court proceedings to repossess your home without any further notice.
If you haven't already, getting some help from a professional adviser will aid your cause. Not only are they familiar with the process and the technicalities of the law, but they will also work with you to negotiate with your lender. Advisers can be found by contacting either Shelter (www.shelter.org.uk) or the Citizens Advice (www.citizensadvice.org.uk). An adviser will also be able to help you stop the process at any stage by proposing various courses of actions. A court will also look more sympathetically on your case if you have demonstrated a willingness to negotiate and compromise with your lender.
Your adviser will also review the details of your case with you to make sure that all the facts are correct and not in dispute. They will also look into the initiate process of when the mortgage was granted to make sure that you were not miss-sold or misrepresented in any way. These technicalities can work in your favour so getting an adviser to work with you is well worthwhile.
Once your lender initiates court proceedings for possession, you will receive a summons outlining the date and location of your hearing. You must respond to this summons since failure to do so can seriously harm your case. An adviser can help you prepare your case ready for the hearing and also try to negotiate with the lender.
Once you get to court, there are several outcomes possible. These include:
•An adjournment to a future date for more information or to allow negotiations to be concluded; •Striking out the order if the lender fails to make its case or your defence or proposals are accepted; •Allow you time to sell the property in an orderly manner so as to pay off your lender and avoid repossession; •Allow you to stay in your house subject to certain conditions (usually related to paying off the arrears); or •Rule in favour of the lender and issue a repossession order to have you evicted.
If your home is to be repossessed, the judge will confirm the date by which you must surrender it. If you have not done so by the required date, your lender must apply to the court for a bailiff's warrant so as to forcibly take possession.
One option that you may consider is to sell your home prior to repossession to a company that will then rent it back to you. There are numerous such schemes being marketed and they can provide a useful alternative to any other actions being considered. The process can be very quick – less than 7 days is possible – but you may not always get the best price for your property. If considering a sale and rent back proposal as a way of paying off your lender and avoiding repossession then you should seek professional help before committing to any one scheme.