Being threatened with repossession doesn't mean you will automatically lose your home, and even if your lender takes you to court it may be possible to stop the process
Taking action early will increase your chances of delaying eviction or stopping it altogether. In many cases, your lender will have to prove a legal reason and get a court order to remove you from your property. As a home owner, you can only be evicted if your lender or freeholder has a legal reason and the correct procedure is followed. Repossession doesn't happen automatically and so it may be possible to stop the eviction at any stage in the process.
Reasons for repossession
The most common reasons for repossession are defaulting on mortgage or other payments e.g. loans secured against your home. Leaseholders can also be evicted by their freeholder if they break the conditions of their lease, such as not paying ground rent or service charges, but this is unusual.
The only other way in which you can be made to leave your home is if the local authority or another public body makes a compulsory purchase order to buy your home. This normally only happens if a major local development, such as a road widening scheme, is planned. If you are in this situation you will be entitled to compensation. You can get advice from a housing aid centre or citizens advice bureau in your area.
The process
Your home can only be repossessed if the correct procedure is followed. This normally involves the following steps:
· Your lender or freeholder contacts you, asking you to put the problem right
· You are warned that if you don't pay, solicitors will be brought in
· A solicitor contacts you saying that legal action will begin if you don't pay
· Your lender or freeholder applies to the county court for a possession hearing
· You get a summons from the court
· The hearing takes place and the judge makes a decision
· If the court orders that you should be evicted, it will give you a date to leave
· If you don't leave your lender or freeholder can ask the bailiffs to evict you
· The bailiffs will contact you to set a date for the eviction
· A few days later, the bailiffs will come to remove you from your home
Get advice
If you are threatened with repossession, get advice immediately. Depending on your circumstances, you may be able to stop the repossession at any point in the process. The earlier you take action the more options you will have and the less you will have to pay in legal costs. Use advice services to find a housing aid centre or citizens advice bureau in your area. An adviser may be able to help you to:
· Work out what options are available
· Negotiate with your lender or freeholder
· Fill in court papers and explain your situation to the judge
· Find alternative accommodation if you are evicted.
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