How to Stop a Repossession – What You Can Do
f you are concerned about losing your home…don’t give up. Get advice and take action. Don’t ignore it, it won’t resolve itself. If you need to stop a repossession there is a process that has to take place before it goes to court.
The Covid-19 lock-down and subsequent furloughing and lay-offs have caused a lot of hard working people a lot of trouble. Through no fault of their own, people are now in danger of the possibility of having their homes repossessed.
The banks have been reasonably understanding, given the circumstances, but this is not going to last forever. If you are unfortunate enough to be one of those affected, and are looking to stop a repossession because you have missed payments on your mortgage, then you need to assess where you are and what you can do.
Repossessions have been suspended for a while but will resume shortly and there will be a backlog of cases. This might give you a bit of extra time but it’s only a delay, and your problem won’t go away. Ultimately, the only way to stop a repossession is to pay the mortgage somehow. You do have the option to sell your house before repossession, but you will have to be quick. You might not have enough time if you put it with an estate agent as it can take months to find a buyer, and then another month or so for the sale to actually complete.
If you are having trouble making your payments, call your lender straight away.
Not paying your mortgage – no matter what the reason – will red flag your account and can eventually lead to repossession proceedings. Obviously, you couldn’t foresee this global pandemic happening and didn’t plan on getting into arrears on your mortgage…. but hope is not lost. If you are looking to stop a repossession, get advice and take action
Don’t be embarrassed, ashamed, or think you’ll just pay extra next month.
One missed payment is all it takes to signal the lender that there might be a problem. Most lenders would rather you pay them something rather than nothing. If you can’t come to an arrangement with them to carry on paying then selling the property before they take it from you may be better for you financially as you have no control over how much the lender sells it for and if it will be enough to cover your debt. If they sell it for less than you owe them, you may still have to pay that debt somehow in the future.
Homeowners default on their mortgages for a variety of reasons. Mortgage lenders do understand the hardships people face, especially since the lock-down, and they would prefer not to initiate repossession proceedings if at all possible. Obviously, they would much rather you keep paying them every month, but their main goal is to protect their asset, which is your home. Obviously, the best solution for all parties involved is to avoid this process altogether so if you expect you can’t make a payment, call your lender and discuss it.
We may be able to help you stop a repossession and bring your mortgage up to date and stop further damage to your credit record.
Get in touch to stop a repossession .. or call us on 0208 265 7102 to see if we can help.
Before it goes to court
Before a mortgage lender can repossess your home, they must:
- tell you how much you owe
- consider a request from you to change the way you pay your mortgage
- respond to any offer of payment you make
- give you reasons for turning down your offer of payment within 10 days
- give you a reasonable amount of time to consider any proposal they make
- give you 15 days’ written warning if they plan to start court action
- tell you the date and time of a repossession hearing
- let your council know within 5 days of getting notification of the date of the court hearing, in case you need to apply to the council as homeless
Finding a solution
Even if your mortgage lender starts a court action, you may still be able to reach an agreement with them. You’ll still need to attend court to tell the judge about the agreement, unless the court tells you the hearing’s been cancelled or postponed.
Defence form
If your lender starts a repossession action against you, the court will send you a blank defence form and guidance on how to fill it in. You can use the form to explain why you think the lender shouldn’t repossess your home. You need to return it within 14 days.
The court will also send you:
- copies of the claim forms for possessing your home, filled in by your lender
- a court hearing date
- the court’s contact details
Help with legal costs
If you’re on a low income you may be able to get legal aid.
Free legal advice on the day
If you haven’t got help before, you can get last-minute legal help under the Housing Possession Court Duty scheme. The scheme runs in county courts in England and Wales. It provides you with a specialist adviser on the day of your hearing who can:
- represent you
- help you come to an arrangement with your mortgage lender to pay off your debts
To find out about the scheme in your area, contact your local council or the court where your case is being heard.
Repossession orders
The lender can only repossess your home if the court grants permission. The judge could decide to:
- adjourn (delay) the hearing
- set aside the case, which means no order will be made and the hearing is finished
- make a repossession order
Delaying eviction
You can ask a judge to ‘suspend the warrant for possession’. This means delaying the eviction or allowing you to stay in your home if you are able to make payments again.
A new hearing will be held but the judge won’t automatically agree to suspend the possession warrant – it depends what happens in court. If you want to get a warrant suspended, get advice immediately.
If you want to talk to us about selling your house before it gets to this stage
This idea of losing your home is certainly stressful but there are ways out of repossession so you don’t totally ruin your credit score or have a repossession on your record. Educating yourself is key to understanding the process and finding a solution to stop the repossession from happening. The point is to take action rather than sitting back and waiting for someone to come and rescue you. Don’t wait until the bailiffs are due to come and then start desperately looking for help. Keep control of the situation as much as you can.
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This guide is for information purposes only and is not to be seen as legal advice. You should consult a legal expert before you make any decisions if you are going through repossession