To apply for a repossession order your lender will need to go through several steps. If you are able to make your payments on time, your lender can drop the repossession order.
You should be familiar with each step and the timeline if you are facing the threat of repossession. You can reverse a repossession, so it’s easier to resolve and keep your house. We buy any house we have provided all information about the repossession process.
How can I avoid being repossessed?
Your lender should be able and willing to help you develop a plan to manage your payments until your finances are in order. Although mortgage lenders won’t immediately apply for a stop repossession order, they will need to follow certain steps. You should notify your lender if you are unable to pay your monthly payments.
What happens to my lender if I fail to tell them I have financial problems?
If you fail to pay your arrears or are unable to reach an agreement with your lender regarding your current situation, your lender may apply for a court repossession order. Without this order, they are not allowed to take possession of your house.
What next?
After your lender has filed for a court order the courts will schedule a hearing. You will be able to present your situation and the judge will decide whether or not your lender will take possession of your home.
What can the courts do?
A judge can make a variety of decisions regarding your court case. They might declare:
- Your lender will then evict you from your house and force you to sell it to pay your arrears.
- Suspended possession orders. If you don’t comply, your lender can obtain a repossession or order.
- This will typically mean that your case will be delayed, but you will still need to return for the remainder of the case after a set amount of time.
- This is rare, but if the lender fails to follow the proper procedure for a repossession, a judge can dismiss the case and allow you to keep your house.
After a judge has approved the repossession order. What happens next?
A judge will determine a date when you must leave your house for your lender to repossess it. You will usually be allowed 28 days to locate another place to live, but this can change depending on your circumstances and the final decision of the judge.
I don’t want to leave my house, can they force it?
Your lender may order bailiffs to take you out of the property if you refuse to leave. It is recommended that you locate another place to live within the time limit set by the judge.
How long does it take to repossession?
The entire process can take as long as 9 months due to the many steps lenders must follow in order to obtain a repossession order. Your lender will be able to suggest several ways to manage your arrears. Your lender can suggest several ways to deal with your arrears. They would prefer to work with you for a few months rather than complete the repossession process.
What happens to my house if it is repossessed by someone else?
You might consider selling your home before you receive a repossession order. Your credit score is another reason why selling your house to avoid repossession could be a benefit. Repossession can cause significant damage to your credit score and could linger for many years.
