Avoid Repossession

Being Repossessed? Let Me Help

If you are getting letters from your bank due to missing mortgage payments then the sooner you act, the more options that you have.

Getting repossessed is very rarely the best option. According to figures published by the government, in 2022 “Compared to the same quarter in 2021, mortgage possession claims increased from 2,499 to 3,476 (39%), orders from 400 to 2,382 (496%), warrants from 525 to 2,419 (361%) and repossessions by county court bailiffs increased from 45 to 770 (1,611%)”.

Yes, you read that correctly, repossessions are up 1,611%. You are not alone.

We are not naïve enough to believe that we can stop every repossession in Greater Manchester, as much as we would like to. However, we can help a lot of people to avoid repossession.

The Repossession Stages

The broad stages of repossession are the same regardless of your lender. The specific steps will vary depending on a number of different factors.

We would urge everyone in this situation to take action early. The sooner you seek help, the more options you have and the least amount of costs have been incurred. The longer you leave it, the more it will cost you in interest, fees from the lender, court fees, selling fees etc etc and the less control you have over the outcome.

The 6 broad stages of repossession are:

1- The Letters
Once you start to fall into arrears the lender will write to you and ask you to resolve the problem.

2- Court Proceedings Commence
If you have not paid the arrears or agreed a plan with the lender, they will then start the repossession process by applying to the Court. The lender may tell you that they are doing this or you may just receive the letter from the court. The court letter should include the claim form (with the court date written on it), the particulars of the claim (why the lender is seeking repossession) and a defence form.

3- The Court Hearing
On the court date a County Court Judge will hear the case and review the evidence provided by yourself and the lender. The likely outcomes are:

Repossession – you lose your home.

A Suspended Possession order is granted – you can stay in your home if you adhere to certain conditions (for example, repay the arrears in agreed instalments).

Adjournment – This means that you have the opportunity to agree a solution with the lender prior to returning to court for a decision.

Case Dismissed – The judge strikes out the claim, you keep your home.

4- The Bailiffs
If the court grants the repossession or you fail to adhere to the terms of the Suspended Possession order the lender can ask the court for a Bailiffs Warrant to have you removed from the property.

5- Your Home is Sold
The property will be sold by your lender. Although the lender has a responsibility to get a fair market price for the property, how often that actually happens is open for debate. You will continue to be charged interest on the mortgage until the property is sold. Once the property is sold, your lender normally sends a detailed financial breakdown detailing the sale price, costs and remaining proceeds or debt. All of the related charges (including selling fees) will be included.

6- Outstanding Debt
It is a common mistake to believe that once your home has been repossessed that the pain is over, that is not always true. If the proceeds of the sale do not cover all of the mortgage and costs, you can be pursued for the outstanding amount for 12 years. However, if at the time of repossession a money judgement is issued, there is no time limit on how long the lender has to pursue you.

Get in touch to find out how we can help you.

The Repossession Costs

This section is split into two parts. Firstly the financial costs and then the emotional costs.

Financial Costs

Some of the financial costs are:

Repossession usually wrecks your credit rating. Therefore, getting loans, bank accounts, credit cards, any kind of finance can be difficult. Also, many landlords carry out credit checks on prospective tenants. Therefore, repossession can also impact your ability to rent property.
Any mortgage arrears.
Maintenance of the property is still your responsibility after the property has been repossessed and not sold. You will be charged for any maintenance costs or repair bills.
Ongoing mortgage and interest payments until the property is sold.
Buildings insurance until the property is sold.
Penalty charges for missed payments.
Legal fees.
Court fees.
Estate agents’ and/or auctioneers’ fees.
Any second charges (secured debt).
Moving costs.

As can be seen from the list, a number of the costs can be reduced or avoided by taking early action.

Emotional Costs

Much of the advice available regarding the impact of repossession ignores the emotional impacts. However, the emotional impact can be huge. Therefore, we want to cover it here, repossession can cause:

Thoughts of failure and hopelessness.
Strain on relationships.
Strain on the whole family, including the children. As much as you try to protect them, they will sense a problem.
The embarrassment of being repossessed and having the Bailiffs at your door.

Acting early can help to reduce not just the financial costs but also the emotional costs. Please contact us as soon as possible, we can work together to reduce both the emotional and financial costs.

Whether you have received the first letter notifying you of the possibility of repossession or have a date for the bailiffs, we can help you.

PLEASE DO NOT STICK YOU HEAD IN THE SAND – THE QUICKER YOU CALL, THE MORE WE CAN DO TO HELP AND STOP THE MOUNTING COSTS.

Repossession is not a nice process but there are still ways to resolve your problems and avoid repossession. All is not yet lost but you need to act quickly. If your home is repossessed, not only do you lose your home but there are a lot of fees and charges that get added to your bill. Therefore, it is possible that you could lose your home and still owe money which you can be pursued for repayment on for twelve years (in some cases, the rest of your life). Please contact us now so we can get started with helping you.