Repossession, surely, never entices the homeowner but knowing about the repossession procedure is, nevertheless, an important step to explore the possibilities in the times of hardships. Moreover, understanding the legal repossession process makes one prepared to avoid the circumstances that may result in eviction. The whole repossession procedure can be broadly classified into five steps as follows.
Notification: In this step, the lender writes to the homeowner that the latter is behind in payments and provided matters don’t improve the lender may be bound to take the homeowner to court hearings. If the homeowner ignores the first few letters, the lender will write again that they are willing for a legal solution offered by the courts and thus will invite a court hearing. It is important to contact the lenders immediately upon receiving the letters; and inform them and try to make an agreement stating your position.
Solicitor’s Intimation: The solicitor’s warning may arrive if 4 to 6 month’s dues are unpaid. The warning will encompass the demand of full payment of the arrears and information that the lenders will be bound to repossess your house if you fail to meet the deadlines mentioned in the letter. There’s a possibility of agreement till this phase and homeowners should fully leverage on it by stating their position and willingness to pay the arrears back.
Repossession Proceedings: If you fail to pay back the arrears for 6 or more months, the solicitors will issue a County Court Repossession proceeding. In this process, the court decides a hearing’s date which is attended by the lender’s representative(s), the solicitor(s) and the homeowner.
Court Orders: The court may decide in a number of ways. The first is to “adjourn” the hearing for the absence of one party or other similar reasons. The case may be “Adjourned Indefinitely” if the arrears are paid back in full by the homeowner. A “Suspended Order of Possession” may be given when the homeowner agrees to pay the dues back in monthly installments which include a pre-set amount towards the arrears too. If all of these decisions are found to be inapplicable, the court would decide for an “Order of Repossession”. It gives the lenders a tentative date, often of 28 days, of repossessing the house.
Eviction: In a situation where you have failed to perform according to the norms referred to in the Suspended Order of Repossession or stayed back in the house after the tentative date provided in Order of Repossession, the lender will get bailiffs warrant from the court. The bailiffs would set a date of eviction and would evict you after a final notice.
The repossession procedure is, in fact, worrisome and far more demanding than you may anticipate. Therefore, after the third step, if everything else fails, it is best to sell the house of your own. This will save some of your money and time. It will also let you decide your own fate without actually facing the repossession.
