REPOSSESSION


REPOSSESSION

If you are fighting an application by your mortgage lender for repossession of your home it will be an incredibly stressful time.  Such repossession applications are sadly very common and homeowners in these circumstances are often unable to afford legal advice from a solicitor.

There are charitable organisations that can help you with repossession, but in these pages, you will find lots of useful information about repossession.  Suffice to say here that judges do not put people out of their homes lightly and there is much you can do to stay in your home.  We hope you find these repossession pages useful.

REPOSSESSION – DO YOU WANT TO KEEP YOUR HOME? It sounds like a silly question, but sometimes, for some people letting their house ‘go’ through repossession is a relief.  It can mean an end to worrying about money and watching every penny.  It can provide an opportunity to ‘start again’.

If you do want to stay in your home and want to fight repossession, there are real practical things you can do to increase your chances of persuading the court to not make a repossession order – but you need to be clear about what you want from the court – the clearer the proposal you put to the court, the more chance you have of getting what you want and cancelling repossession.  So if the answer is ‘Yes – I want to stay in my home’, we suggest you have a look at our pages on what the court can order before putting together your proposal for repossession.

I WANT THE LENDER TO DO REPOSSESSION It is a tough decision to make whether to have repossession to occur, but sometimes ‘handing back the keys’ through repossession can be a relief – a chance to start again.  There will be implications to voluntarily handing back your property which you should discuss with your lender.

Every mortgage account will have what is known as a ‘Balance Outstanding’ figure which is the total sum owed to the mortgage lender.  This is the amount that you will have to repay when the house is sold.  If repossession occurs and the house is handed back to the lender or the court makes an order giving repossession to the lender, then it will usually be put on the market.  After it is sold through repossession, the money is applied to the balance outstanding under the mortgage and if there is any surplus left it is passed back to the borrower.

If however when the house is sold through repossession the proceeds of sale do not cover the balance outstanding on the mortgage account you will usually be liable for the shortfall.  In these circumstances you will need to talk to your lender about what can be done about the money owed to the following the repossession sale.

If you decide to either hand back the property or not oppose the lender’s application for repossession, you should talk to your lender about the implications and seek independent advice in relation to what position this will leave you in.

I WANT TO KEEP MY HOME AND AVOID REPOSSESSION If you decide that you wish to keep you house and avoid repossession, the court can let you repay the arrears that have built up over a specified period of time – but only if it is satisfied that you can afford to maintain payments that are due under the mortgage.  The court cannot interfere with the mortgage contract – so it cannot extend the term of the mortgage or reduce the monthly payments.  But if you have made the decision that you want to stay in your house and avoid repossession, you will need to get organised and prepare yourself for dealing with your lender or the court.  For further details click here.