What is house repossession?
House repossession is a legal process where a mortgage lender or secured loan provider takes ownership of a property. Bailiffs are assigned to carry out a repossession order and provide an eviction date for the homeowner to vacate the property for they can then come and take ownership.
House repossession process
Step 1: your lender contacts you
- Your lender contacts you about missed mortgage payments and then attempts to find a solution with you to resolve your arrears and get you back on track.
- You do not have to wait for them to contact you, if you’re feeling worried you can contact them and find a solution
- Most banks and building societies have signed the government’s mortgage charter.
- They have agreed not to force people to leave their home within a year of their first missed payment unless there are exceptional circumstances.
- You have time to get advice and take steps to deal with missed mortgage payments.
Step 2: your lender starts court action
- Your lender may start court action to repossess your home if you cannot agree to a repayment plan.
- This should be a last resort. They must provide you with a list of all missed payments, the total level of arrears and the outstanding mortgage debt before they apply to court.
- There are other rules the lender must follow before starting court action. Get legal advice if your lender starts court action.
Step 3: the court sends you paperwork
- You will get several letters and forms from the court. Keep them together in a file.
- You should check the documents carefully and complete and return the defence form
Step 4: you attend the possession hearing
- It’s very important to attend the hearing. If you do not turn up, the court will probably make an outright possession order and you could lose your home.
- You should tell the court as soon as possible if you have a very good reason not to go. For example, sudden and serious illness.
Step 5: the court makes a decision at the hearing
There are 2 types of possession order:
- Suspended Order A suspended order allows you to stay in your home on the terms set by the court. You have to pay a set amount on top of your normal monthly mortgage payment.
- Outright Order: This is very serious. It sets a date for you to leave your home. This could be as soon as 4 weeks after the hearing.
Step 6: when bailiffs can be asked to evict you
- A suspended order and you break the terms of the order.
- An outright order and the date for possession has passed.
- Your lender must apply for an eviction warrant from the court.
- They must send a notice to your home to say they’ve done this.