Repossession and Eviction: Your Rights and The Legal Process Explained
If you are in mortgage arrears you could face repossession. In these circumstances it is important to know your legal rights so that you understand the process. If you are in financial trouble it is important to deal with the situation as soon as possible, as the repossession process continues your options will decrease. Read on to learn more about the repossession court process and eviction.
Can a mortgage lender repossess my house without a court hearing?
No! Your mortgage lender cannot repossess your house without a court hearing. Furthermore, prior to your hearing they need to give you due warning that you have fallen into arrears and the option to pay these debts over a certain time. It is important not to ignore these letters as this is the best stage to come to an agreement with your lender, either to spread the costs of what you owe or to start thinking about selling your house yourself. If you ignore warnings or fail to come to an agreement you will be summoned to court by your lender. You will receive a letter with the lender's claim, the date and a reply form. It is important that you reply with as much information to support your case as possible.
What is an affidavit?
An affidavit is a legal document that contains the details of your lender's claim, the outstanding balance you owe, payment details, interest rates and terms and conditions. You will receive this closer to the time of your repossession hearing date.
What are the possible outcomes of a repossession court hearing?
During the court hearing only you, the judge and the lender's solicitor will be present. The judge will listen to all evidence and proposals and will make a decision based on that. If you have an idea to resolve the situation, for example selling your house quickly yourself or paying back the arrears, it is important that you voice it during the hearing. Based on what is said, the judge will decide to strike-it-out, adjourn, a suspended repossession order or a repossession order.
Strike-it-out will stop any court action if your lender has no case against you for example if you have already paid the outstanding arrears or have an agreed sale on your house. The judge may adjourn, delaying the sentence, to give you a chance to sell your house. A suspended repossession order could be granted if you and your lender can reach an agreement to repay the arrears in installments. It is important that you keep to the conditions of the suspended repossession order or you could face immediate eviction. Finally, the worst outcome is a possession order: if no agreement is reached a date will be set for your eviction.
When will the eviction date be?
Usually the date for your eviction will be set 28 or 56 days after the possession order, by which time you need to have left the property. During this time you cannot attempt to sell your house. Therefore if you are facing a court hearing you may want to consider selling your house quickly yourself, if you attend court with proof of a sale started the judge will usually allow you to continue.
Will bailiffs be involved in the repossession of my house?
If you have left the property by the date given on the possession order then no. However if you have not left the property by then the mortgage lender will apply to court for a bailiff's warrant. The bailiffs will write to you to tell you when the eviction will take place and on that date they can remove you from your home. There is no negotiating with bailiffs.
Will I still owe money after my house has been repossessed?
Unfortunately once your house has been repossessed you have no control over how it is sold. Usually houses are put up for auction, often with no reserve. Therefore there is a high chance that your house will sell for much less than its market value. If this is the case and you owe more on your mortgage than what it sold for, you will still owe the lender money. For these reasons it is favourable to avoid repossession at all costs, either by renegotiating with your mortgage lender or selling the house yourself before court proceedings to pay off your debt.
If your house is being repossessed it is important to get financial advice as soon as possible. In most cases there are ways to avoid repossession, whether or not it is through the quick-sale of your property or a new mortgage agreement with your lender. Your options will diminish as time goes on so don't ignore your financial problems, if you fall into mortgage arrears contact your mortgage provider as soon as possible to discuss your situation with them and avoid repossession.
If you are in mortgage arrears you could face repossession. In these circumstances it is important to know your legal rights so that you understand the process. If you are in financial trouble it is important to deal with the situation as soon as possible, as the repossession process continues your options will decrease. Read on to learn more about the repossession court process and eviction.
Can a mortgage lender repossess my house without a court hearing?
No! Your mortgage lender cannot repossess your house without a court hearing. Furthermore, prior to your hearing they need to give you due warning that you have fallen into arrears and the option to pay these debts over a certain time. It is important not to ignore these letters as this is the best stage to come to an agreement with your lender, either to spread the costs of what you owe or to start thinking about selling your house yourself. If you ignore warnings or fail to come to an agreement you will be summoned to court by your lender. You will receive a letter with the lender's claim, the date and a reply form. It is important that you reply with as much information to support your case as possible.
What is an affidavit?
An affidavit is a legal document that contains the details of your lender's claim, the outstanding balance you owe, payment details, interest rates and terms and conditions. You will receive this closer to the time of your repossession hearing date.
What are the possible outcomes of a repossession court hearing?
During the court hearing only you, the judge and the lender's solicitor will be present. The judge will listen to all evidence and proposals and will make a decision based on that. If you have an idea to resolve the situation, for example selling your house quickly yourself or paying back the arrears, it is important that you voice it during the hearing. Based on what is said, the judge will decide to strike-it-out, adjourn, a suspended repossession order or a repossession order.
Strike-it-out will stop any court action if your lender has no case against you for example if you have already paid the outstanding arrears or have an agreed sale on your house. The judge may adjourn, delaying the sentence, to give you a chance to sell your house. A suspended repossession order could be granted if you and your lender can reach an agreement to repay the arrears in installments. It is important that you keep to the conditions of the suspended repossession order or you could face immediate eviction. Finally, the worst outcome is a possession order: if no agreement is reached a date will be set for your eviction.
When will the eviction date be?
Usually the date for your eviction will be set 28 or 56 days after the possession order, by which time you need to have left the property. During this time you cannot attempt to sell your house. Therefore if you are facing a court hearing you may want to consider selling your house quickly yourself, if you attend court with proof of a sale started the judge will usually allow you to continue.
Will bailiffs be involved in the repossession of my house?
If you have left the property by the date given on the possession order then no. However if you have not left the property by then the mortgage lender will apply to court for a bailiff's warrant. The bailiffs will write to you to tell you when the eviction will take place and on that date they can remove you from your home. There is no negotiating with bailiffs.
Will I still owe money after my house has been repossessed?
Unfortunately once your house has been repossessed you have no control over how it is sold. Usually houses are put up for auction, often with no reserve. Therefore there is a high chance that your house will sell for much less than its market value. If this is the case and you owe more on your mortgage than what it sold for, you will still owe the lender money. For these reasons it is favourable to avoid repossession at all costs, either by renegotiating with your mortgage lender or selling the house yourself before court proceedings to pay off your debt.
If your house is being repossessed it is important to get financial advice as soon as possible. In most cases there are ways to avoid repossession, whether or not it is through the quick-sale of your property or a new mortgage agreement with your lender. Your options will diminish as time goes on so don't ignore your financial problems, if you fall into mortgage arrears contact your mortgage provider as soon as possible to discuss your situation with them and avoid repossession.
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