Understanding Repossessed

Repossession is the legal process that occurs when a mortgage lender obtains a court order to take possession of a property due to the mortgage falling into excessive arrears.

They will initially contact you in writing reminding you that you have missed payments. They will request you to contact to discuss the mortgage situation and discuss when you intend to catch up on arrears.

If they are not satisfied with your responses, or if your debt and arrears situation continues to gets worse, they will probably write to you again. The second letter usually states that you must immediately clear your debts or make contact, or their solicitors will contact you.

Should they still not be satisfied with your response, or if you haven't replied then they will then apply to the court for a possession order to allow them to take over the property.

As a home owner, you can only be evicted if your lender or freeholder has a legal reason (grounds) and the correct procedure is followed. Repossession doesn't happen automatically. It may be possible to stop the process at any stage.

If your home gets repossessed not only will you be homeless but your credit rating will be seriously affected and it is likely to be difficult to own home again.

For more information see the excellent website Home Repossession.

To sell your house before you're repossed read this guide to a quick house sale.