Property Repossessions – The Repossession Process

Repossessing Property Process: Notice from your Lender

Once you have missed the 1st payment to your lender, they will write to you to confirm that you are in arrears. Usually within the letter, they will ask you to make a payment to them within 7 days either in full or suggest a plan in which to pay back your arrears. There is often a payment required as a result of going into arrears which is normally added to the loan amount.

If the mortgagee does not contact the bank, or make a payment to them they then have the right to begin legal proceedings against the mortgagee, provided that they can prove that the mortgagee is in arrears for over two months. This would be the beginning of the repossession process and the mortgagee is at risk of losing their home. The lender will normally write to the mortgagee advising that a court order for possession has been applied for.

Repossessing Property Process: A Summons from the Court

If the mortgagee have been unable to pay back the arrears and a possession order has been applied for by the lender, a judge will set a hearing date and the court will write to the mortgagee requesting their attendance.

As soon as the mortgagee receives a court summons they are advised to obtain advice immediately about options and what to do next. If there is an error with the notices served then there is a strong chance the case for repossession will be void.

Repossessing Property Process: The Court Hearing

During a hearing, the judge will hear from the mortgagee and the lender and come to a decision about what should happen next. This decision will depend on whether the mortgagee can repay the mortgage and if the terms and period to make the repayments are acceptable for the mortgagee. The courts do not like property repossessions, so will try all that is possible to find a solution between the mortgagee and the lender.

Some of the options open to the judge include: allowing the mortgagee to stay in the property provided the mortgagee keeps to certain conditions, such as repaying the arrears in instalments; giving the mortgagee time to sell the property to avoid repossession or deciding that you should be evicted.

For a first hearing it is more than likely that more information will be required in order to make a decision so the case may be adjourned with a new hearing date set.

During a second hearing, a suspended order will not normally be given unless there is a clear change of circumstance i.e. the mortgagee can clear the arrears or they have found a buyer that can purchase the property in 4 weeks or have increased their income/changed employers.

Repossession Process: The Possession Order

If the judge decides that the mortgagee has to leave their home, the court order will set a date for the mortgagee to vacate the property. If the mortgagee has not left by that date, the lender must apply for a warrant of execution so that a court bailiff can legally remove the mortgagee from their home.

Repossession Process: Eviction Order

The Judge will order that the mortgagee be evicted from their home if the mortgagee cannot repay the arrears and ongoing mortgage payments. This order will set a final date for when the mortgagee is to vacate their premises and normally this is within 14 and 28 days.

If the mortgagee doesn’t leave, the landlord will return to court and ask can ask for a warrant (of execution). This will allow the court bailiffs will be able to evict the mortgagee. Although they cannot use violence to remove the mortgagee they can use reasonable force in order to be able to gain access to the property and even ask police to assist in maintaining a peaceful eviction. If the mortgagee is still in the property, they will give the mortgagee 10 minutes to collect some essential belongings, then they will accompany the mortgagee from their home and a locksmith will change all the locks on the mortgagees home. They will be entitled to a supervised visit approximately 14 days later to remove your belongings. All the costs including eviction and estate agent fees will be added onto your mortgage debt.