Heron 
Avoid Repossession
Re-mortgage 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.
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 on your home you will not lose your home immediately as there are several courses of action that need to be taken first.
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:
- 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. - 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. Again, make contact with the
solicitors and try to come to an arrangement to make ongoing
payments to clear the arrears over time. - 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. - 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. - 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). - 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, act quickly and talk to us and we will try to help you avoid repossession!
TO AVOID REPOSSESSSION 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 1.5% of the loan amount depending on your circumstances (subject to a minimum of £1,000 and maximum of £3,000). For a mortgage of £100,000 the fee would be £1,500. 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