The initial correspondence is usually in the form of a letter reminding you that you have missed payments. It will request you to contact the lender to discuss the mortgage situation and discuss when you intend to catch up on arrears.
If your lender is not satisfied with your proposals, or if your debt and arrears situation gets worse, they will probably write to you again. The second letter usually states that you must immediately clear your debts or make contact with the lenders, or their solicitors will contact you.
When solicitors get involved, they will send you a letter giving you seven days to pay off all your arrears or make a proposal for doing so. If they are not satisfied with your response, they can start court action without any further warning.
It is always best to be honest with your lenders and explain your financial situation up front. Even if you can't come to an agreement, the court is more likely to be sympathetic if you made an effort to sort things out before legal action was started. If letters are ignored, you will eventually be served with a county court summons (within six months of the first arrears).
A county court summons will call you for a court hearing at which the lender will apply for a repossession order.
This order signifies that legal proceedings to repossess your home have begun. At the subsequent court hearing, your lender will inform the judge that your arrears amount to a breach of contract to make and continue making payments.
If the judge agrees, the lender will be granted possession. That means you must move out of the home by a date set by the judge. Your home will then be sold to repay the mortgage. If the sale does not cover all the expenses (including all arrears, legal and admin costs, bailiffs, etc) you will still remain personally liable to the lender for such subsequent claims.
Back to How Repossession Works
Home Repossession
What Is Repossession?
Why you can be Repossessed
How Repossession works
Preventing A Repossession
Repossession FAQs
After A Repossession
Repossession Precautions
Repossessed Property
Repossession Questions and Answers
Home Repossession Site Map
About Home Repossession
Contact Home Repossession
Home Repossession Legal
Home Repossession Links
Repossession News
Car Repossession
Privacy Policy