In an unfortunate event of repossession, the knowledge of the repossession rights can be your best friend. You should at least know about the actual legal procedure and must therefore also be able to take an appropriate step to avoid the potential eviction.
The whole process of repossession can be broadly divided into four stages. In the first stage or the notification stage, the lender will notify you in writing that you need to pay the arrear within a fixed deadline. Ignoring these letters is not advisable since this is the situation where you can come to an agreement with the lender. If you fail to come to an agreement, they will write to you again that they tend to take you to court for a hearing.
In the second stage, the court will write to you informing you about a potential repossession hearing. This letter will contain a “reply form” returning which, again, is very important. You can notify the court that you are taking steps to pay the arrears back, such as trying to sell your house. This may result in the court deciding to delay the hearing. As the date of hearing arrives, the court will send you an affidavit that will contain all the details of the claim, the remaining balance, payment data, interest rates applicable and any other terms and conditions related to your repossession rights that may be useful.
The third stage is the most important as the hearing takes place in court in this phase. The court will hear to the lender’s claims, evidences and check the petition. The judge will also hear your case and may offer you some relaxation in the time to pay your dues back. The decision may be of four types. The court will “strike it out” if you have already made the payment or informed the lenders that you will pay their dues shortly. The court may also give you some time and “adjourn” the hearing for some time, usually 4 weeks. If you have no other alternative, the court may decide for a “Suspended Possession Order” in which the lender and you agree to pay the dues back in installments. However, failing in any of the established norms may result in the lender approaching the court to obtain the bailiffs warrant without another hearing. The final decision may also be a “Possession Order” in which the court decides an eviction deadline, usually lasting within 28 to 56 days. It is important to note that if you do not have a good alternative to pay back the arrears; it is a good option to sell your home yourself. This may save you some dimes in contrast to a sale by the lender after evicting you.
In the final stage of repossession, your repossession rights are limited to leave your house yourself before the deadline. If you do not do so, the lenders will eventually get a bailiffs warrant and the bailiffs will write to you to inform the date on which eviction would take place. Remember, the bailiffs won’t write to you for any agreement. Their sole purpose and aim is to evict you. After eviction, you would have no legal right over your house and the lender may sell it in auctions to fetch the money they require.
