Step one of the house repossession process:
If you miss two or more mortgage repayments, your bank is legally entitled to kick off the house repossession process. But before they call on the legal system, their internal debt management department will get in touch.
They will try their best to advise you, finding the cause of the problem and suggesting practical solutions. If they can help, they will, repossessing your home is a last resort. Keep all the correspondence about any new agreement you reach, and make detailed notes. If things don't improve, you might need them later.
Step two:
After a few more months of unpaid arrears your lender, or more likely their lawyer, will write you a letter. This will warn you that they're poised to begin the repossession process by taking you to court. At the same time they can apply for a house repossession order.
Step three:
The court will send you a summons, this letter tells you the date of your hearing.
Step four:
If you don't turn up and the home repossession process goes through without opposition, the judge must award a repossession order or notice against you.
If you turn up, you'll get a fair say. The judge will listen to all the evidence from you and your mortgage lender before deciding what to do, and there are several possible outcomes:
House repossession process case dismissed, the repossession stops because you have paid your arrears.
Case Adjourned, if the case can't be heard that day, a new date will be set.
Suspended Possession Order, if you have agreed to make your usual monthly mortgage repayments plus something towards the arrears and the judge is sure you can afford it, he or she will aim to suspend the order. If you default, your lender can force possession or evict you without another hearing.
House Repossession Order, this lets your bank repossess your house, usually within 28 days; more likely if the judge finds out you have made no effort to put things right, or feels you have no chance of managing the repayment schedule.
Step five:
The final part of the home repossession process.
If your suspended repossession order fails or you're still living in the property after the order date, your lender can apply for a warrant of eviction notice. This is a letter reminding you that you are legally obliged to leave. You'll have between seven and fourteen days before they send the bailiff in to remove you.
This is a guide to the several steps involved with home repossession, the best place to start asking further questions is from your bank. Your lender may offer a clear way out of repossession but always read the fine print.
