Remortgage with us to avoid repossession and eviction.

Remortgage to Avoid Repossession and Eviction

If your property is repossessed it will be sold at auction. The proceeds of sale will be set against your outstanding mortgage balance, plus any fees that may have been incurred. Any surplus money will be returned to you once the mortgage has been repaid.

Although the lender is required to sell your property for the highest price possible it does not always achieve the price you would get on the open market so this situation needs to be avoided where possible.

However, there is a set procedure that any lender taking you to court has to go through to satisfy the courts that the lender has given you a fair opportunity to settle before arranging a court hearing. A court will normally give you up to 60 days to come up with a plan or a re mortgage to another lender ? and this is where we can help! Even if you have been issued with a possession order your home you will not lose your home immediately as there are several courses of action that need to be taken first.

Your lender will have tried to offer you ways of repaying any arrears but as we mentioned earlier these are often difficult to keep up with on top of your normal

In general, courts take the view that granting an outright Possession Order is an extreme measure and should only be done when there is no chance that the borrower can rescue the situation. Instead one of the following may happen:

  1. Payment reminders: initially your lender will get their Arrears Collection Department to write letters and perhaps telephone to chase missed payments. It is important to keep your lender informed of your position and to try to come to an agreement to clear the arrears over a period of time.
  2. Solicitor's letter: if the arrears are unpaid for 4-6 months or more, your lender will refer your account to their solicitors. They will write to you demanding full payment and warn that repossession could take place if you do not bring your account up to date. Again, make contact with the solicitors and try to come to an arrangement to make ongoing payments to clear the arrears over time.
  3. Start of repossession proceedings: often after six months or more of arrears, the solicitors will issue County Court Repossession proceedings. The court will set a hearing date. You should attend. See How to prepare for a court hearing for detailed guidance.
  4. Court Order: at a possession hearing the court can make a number of decisions.
    • Adjourn - you will be given a new date for your hearing (if for some reason the hearing cannot proceed due to absence or your case needs further information or clarification).
    • Dismiss or Adjourn Indefinitely - usually only following full payment of the arrears.
    • Order for Possession - this will give your lender right to possession after a fixed period, typically 28 days. It's still not too late to act; we can help you with a quick property sale.
    • Suspended Order for Possession - the Order is suspended upon payment of the current monthly instalment, and an agreed amount towards the arrears. This order is very readily applied by the courts. It gives you a further chance, and also gives the lender security. If payment is defaulted upon, the lender has an immediate right to seek possession by Possession Warrant (see below).
  5. Possession Warrant or Notice of Eviction: if you have defaulted on a Suspended Order of Possession or are still in your property after your Order of Possession notice period has passed, the lender will apply to the court for formal eviction. You will receive a date and time from the court when you must leave. The court bailiff will arrive with a representative of the lender and a locksmith to take formal possession of the property.
Remember we can help so act quickly and talk to us and we will help you avoid repossession!

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE The overall cost for comparison is 7.0% APR. The actual rate payable will depend on your circumstances. Please ask us for a personalised illustration. A fee is chargeable only on completion, typically 2% of the loan amount depending on your circumstances (subject to a minimum of (£1,995 and maximum of (£2.995). For a mortgage of (£100,000 the fee would be (£2,000. Early repayment charges may apply and will vary depending on the mortgage. Adding existing debt to your mortgage will increase both the repayment term and the overall cost.
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