We are our largest asset and falling behind in payments can result in us losing it.
Let’s start by understanding what repossession is. This knowledge is crucial if you are going to be able to tackle the problem. This is important advice if your situation is one of repossession, or you want to fast sell a property because you have mortgage payment issues.
The property you buy is yours. Buildings are expensive, so owning one is the biggest investment in your life.
While you are the owner of the property, the mortgage lender can make a financial claim on your property. This claim is valid until you clear the debt. The lender may take the house if you have outstanding payments on the mortgage.
If the loan holder fails to make all the mortgage payments, they have the right to seize the property. You must know that only a judge can decide if the lender has the right of taking your home. The court is also the only one that can decide if bailiffs are allowed to be sent to the property to evict.
The lender cannot simply decide to take possession of the property.
These Are The Steps To Follow:
Contact Your Lender
Because lenders must act fairly and property owners have rights, the lender will first write you to explain the problem and ask you to take action.
They will respond to you and then send you a second notice. This will initiate court proceedings if your response is not satisfactory.
The Lender Requests A Possession
This action must be taken by the lender before the next stage can occur. This is where the lender needs to file a request for stopping house repossession or order at the local court. The lender must explain why they wish to repossess the home when they apply for a repossession order.
The Court Is Currently Involved
After you have heard from the lender, the court will send you a letter explaining the situation. The court will inform you of the date and provide a copy of the claim form submitted by the lender.
You will also receive a defense form that you are required to complete. You will need to fill out the defense form and send it to court.
A Judge Hears The Case
In the County Court, a judge will hear the case.
This stage is where the judge will review all evidence, and hear both from you and your lender. He will then listens to the facts of each case and render his verdict.
You may hear them say your property will be taken away. This is eviction. The lender will then have title to the property and can sell it off’.
A judge might issue a suspension of a possession order. The judge may issue a suspended possession order that allows the property owner to remain, provided they follow the specific conditions the judge has outlined.
A judge might adjourn your case. This allows the lender and you to continue discussing the matter before the court date has been rearranged.
The case might be dismissed
A Repossession Order
If the judge decides that repossession is required, then things can move very quickly. 28 days is the usual time that the judge will expect repossession to take place.
This can be extended by the court in certain situations to 56 days. Costs could be another issue. If you feel it is necessary, the judge may transfer your legal fees to the lender.
The bailiff’s order is obtained by the lender. They cannot be evicted without one of these.
Shelter summarizes the repossession procedure:
After repossession
After you are evicted, your lender will try to sell the property. While the sale progresses, you will most likely have to pay interest.