Repossession
Our Process
What is house repossession?
If you become unable to fulfil your mortgage repayments, there is a good possibility of your mortgage lender reclaiming ownership of your property, which is referred to as repossession.
Repossession of a house can take place if you consistently struggle to make your mortgage payments. Additionally, if you are unable to repay a loan secured against your property, it may put your home at risk. Where your lender will take your property away from you with bailiffs.
What is the house repossession process?
If you find yourself facing difficulties in meeting your mortgage repayments, it is crucial to reach out to your mortgage lender promptly. They may assist you in establishing a new repayment plan or exploring alternative, more affordable mortgage options if applicable. It is advisable to contact your mortgage provider before receiving a letter from them requesting repayment of the outstanding debt. This proactive approach demonstrates financial responsibility and a proactive effort to resolve the outstanding debt.
Going to court for house repossession
If you find yourself unable to repay the outstanding debt and maintain regular repayments, your lender will initiate the legal process of repossessing your property.
You will receive a letter notifying you of a court date scheduled for your property repossession hearing. This letter will contain the following details:
The specific date and time of the court hearing.
The reasons why the lender is seeking to repossess your home.
A defence form enclosed, which you must complete and return before the hearing.
It is crucial to complete the defence form as it provides an opportunity for you to present your situation to the judge. If you are uncertain about your defence, you may consider seeking advice from an advisor who can assist you in preparing for the hearing. An advisor can help gather evidence for your court case and negotiate with the mortgage lender on your behalf.
Possible outcomes from repossession court case
There are several potential outcomes that can result from your repossession court case:
1. The judge may decide in favour of repossession: In this scenario, you will be evicted from your home, as the court grants permission for the lender to repossess the property.
2. The judge may issue a suspended possession order: This order enables you to remain in your home while a repayment plan is devised to clear the debt. However, strict conditions will be attached to this order, and it is crucial to fulfil them. Failure to meet the conditions may lead to repossession of your home.
3. The judge may adjourn the case: If the judge is not satisfied with the evidence presented on the day of the hearing, they may postpone the court proceedings to a later date. This adjournment allows both you and the lender to take necessary steps or provide additional information before returning to court.
How to stop house repossession
Cash Home Buyers exchange of contracts process will be completed within 24 hours, which is legally binding and will automatically stop your repossession. This means you won’t have to worry or experience the stress of repossession, even if a court judgment has been made. It is never too late to negotiate with your lender and establish a strategy to clear the outstanding debt while fulfilling your mortgage repayment obligations. If you find it challenging to repay the debt or lack confidence in meeting ongoing repayment obligations due to changing circumstances, we will ensure that repossession is halted.
There are several advantages to taking charge of the sale process if you are facing eviction. Research conducted by the Joseph Rowntree Foundation reveals that home repossession can have long-lasting adverse effects. Those who have experienced property repossession often encounter challenges in obtaining future loans and may also suffer from emotional and mental health difficulties. By selling the property yourself, you can regain control of the situation and minimise, if not completely avoid, these negative impacts. You can selling your property to Cash Home Buyers, One of our most common services is you can rent back your property for life, with a legally bound tenancy agreement.
To prevent repossession, you will need to provide your lender with evidence that a sale is underway and the best evidence to automatically stop repossession is for contracts to have been exchanged. Selling your property to a professional home buying company like Cash Home Buyers now will be a viable option. We exchange contracts within 24hrs. This will stop repossession and your recommended solicitor will contact the lender and provide the contracts and informing them contracts have been exchanged, which will stop the repossession by law.
What happens when your house is repossessed UK?
If the judge determines that you are unable to settle the arrears, it will be necessary for you to vacate the property. Typically, you will be given a timeframe of around 10-28 days to leave the repossessed property. If you fail to comply within this period, the lender will proceed with applying for permission to evict you. The process of obtaining permission for eviction may take an additional few weeks.
How many mortgage payments can you miss before you face repossession?
Your mortgage lender should view house repossession as a last resort. Therefore, in most cases, lenders will not initiate repossession proceedings until you have missed at least two consecutive mortgage payments. This allows for a certain period of time for you to address any financial difficulties and work towards resolving the situation before repossession becomes a consideration.
How long does it take to repossess a property?
Once the courts issue an outright repossession order, you will be provided with a specific date for the transfer of property possession to your mortgage lender. Typically, this date is set for 28 days after the court hearing. It is important to be aware of this timeline in order to make any necessary arrangements and prepare for the handover of the property.
What happens to your house after you’ve been evicted?
After you have left the property, your mortgage lender will commence preparations to sell it. Generally, the house will be listed on the market promptly once it is vacant. The mortgage lender is obligated to obtain the highest possible price for the property and the lender’s main interest is to have their debt repaid. However, it is common for lenders to opt for selling repossessed properties at auctions. This approach allows for a transparent and competitive bidding process, ensuring the property is sold at a fair market value.
Can Cash Home Buyers assist after a repossession?
YES! We have helped many people in these types of situations. Cash Home Buyers contacts the vendor offering to purchase the property. This will allow you / yourself’s to move back into the property and rent back from Cash Home Buyers for the ‘rest of your life’s’, if you wish to do so. Cash Home Buyers specialises in facilitating this type of transaction. We guide homeowners through the potentially complex process, providing flexibility, agility, and stress-free experience.
What happens to your mortgage after your home is repossessed?
The funds generated from the sale of the house will be utilised to settle your outstanding debt. If there is any surplus remaining after repaying the mortgage and applicable fees, you will receive the remaining surplus. However, if the proceeds from the sale are insufficient to cover the full amount you owe, you will be accountable for the remaining “shortfall debt.” It is necessary to make arrangements with your mortgage lender to repay this outstanding debt. Please note that this debt typically continues to accumulate interest until it is fully settled.
Cash Home Buyers is the UK’s leading cash buying property specialists
It’s as simple as that! On average, contracts are exchanged within 24 hrs and the fast sale process is typically completed within 3 weeks. In certain situations, Cash Home Buyers can expedite the process and buy houses in as little as 4 days.
Contact Us
Phone: 0800 433 2332
Office: 0121 643 1346
Email: info@cashhomebuyers.uk
Whether you’ve been struggling to sell your property for a considerable time or simply desire a fast house sale without any hidden costs, Cash Home Buyers is here to assist. As a trusted property buying company, we specialise in facilitating quick house sales. Our knowledgeable team is ready to address all your inquiries. Contact us today to discover how we can help you sell your house swiftly for cash!