Repossession Advice

As a homeowner, you can only be evicted if your lender or freeholder can prove there is a legal reason for evicting you and if the correct procedure is followed.

Repossession doesn't happen automatically. It may be possible to stop the process at any stage. If you need help, you can contact TDC's dedicated homeowner helpline on 0800 612 6076

How Repossession Happens

STAGE 1: Letters from your lender / secured creditor

If you have failed to make payments on your mortgage then you will receive a letter from your lender letting you know you have missed payments and asking you to rectify the problem. You must contact them to acknowledge the problem and explain what you will do about it.

If you do not respond, you will receive a letter threatening to instruct solicitors to obtain a repossession order.

Tips:

• Keep your lender informed at the earliest stage, even before you have missed a payment if you know if you will miss the payment date
• Reply promptly to letters
• Make efforts to make as large of a payment as you can. Something is better than nothing/little and often could stop the action (above your normal payment)
• Remember that even if it's not your fault you are in arrears, it's probably not the lenders either so taking it out on them won’t help you. It’s your name on to Lang Registry is it not?
• Remember to document everything. If the case goes to court, the more evidence you can show that you have made every effort and attempt to meet your obligations then the more chance you have in getting a better result in court.

STAGE 2: Court Summons

If you have received a summons, then you must reply to this otherwise it will harm your case. The Hearing will take place where a judge will listen to evidence from you and your lender. A decision is made by the judge to:

Postpone / adjourn (the hearing is postponed for a specific reason given by the Judge)

• Cancel / Strike (the repossession is stopped)
• Agreement (repossession is stopped subject to a payment schedule agreed to settle the arrears)
• Delay (The repossession is suspended for a period of time allowing you to sell the property yourself)
• Granted (The repossession order is granted, and a date set by the court by which you must vacate the premises)

If the repossession order is made and you do not leave by the set date, a bailiffs warrant can be obtained and you will be removed from the property.

STAGE 3: Repossession

When you leave the property you must bear in mind that it will be sold on and therefore no matter how tempting it might be to take out frustrations and anger on the property, any damage caused will be classed as criminal and the cost of repairs will be taken from sale proceeds. If repairs are not done then it may impact the price of the house when sold.

The house will probably initially be sold via an estate agent but may end up at auction where the value will be substantially less than that realised on the open market. Because of this, you need the property to be in the best condition you can.

• Make sure it is thoroughly clean inside and out
• Remove all rubbish
• Ensure you have emptied all rooms, loft space, sheds, garages and other outbuildings
• Ensure you leave the garden tidy
• Take photographs of the condition of the property when you leave it, with a date stamp from your camera or some other way to provide witness to the condition at that time.

So many people have their homes repossessed because they do not communicate effectively with their lender. It is important not to avoid talking to them until the last minute. By keeping them in the loop of your actions and plans then there is a greater chance of a successful outcome for both parties in avoiding repossession.

If the property is being sold by an estate agent:

• You find out the exact date it was passed to an agent or agents.
• There is a for sale sign outside the property, if there is no sign then take a date stamped photograph.
• The property is in the estate agents window. If it isn't then go inside and ask for details about properties in that area, if it is mentioned then obtains the full details. If it is not listed then get the name of the sales person.
• Check the sales details and note the value of similar properties in that area
• Make sure the property is described accurately and mentions no upward chain or vacant possession. These are key positive sales factors that may help achieve a quicker sale

Voluntary Repossession

This is when you hand back the house keys and therefore possession of the house to your mortgage lender. This is an action of last resort and should not be taken lightly. IT WILL NOT - absolve you from the debt. You should remember that a mortgage only provides security for the debt. It is not the debt itself so that even when the mortgage comes to an end if the debt is not paid in full you will still be liable for it. Do not take this step until you are absolutely certain that it is what you need to do.