Mortgage Repossession – What can you do?
Are you a homeowner falling behind on your mortgage repayments?
If you are a homeowner and unable to meet your mortgage repayments, you may find yourself in a challenging and stressful situation. It is important to understand the process your lender will follow in repossessing your home and seeking legal advice will assist you in navigating through this difficult time.
A lender who owns the security of a legal mortgage has a right to seek possession of the property; however, possession should be used as a last resort when there is little hope of repayment.
The lender is expected to follow the Pre-Action Protocol in residential cases, by exploring alternatives such as extending the mortgage term or offering a new payment plan. Most mortgage deeds contain a term, which states that the right to possess is postponed for as long as the borrower pays the agreed instalments.
If an agreement cannot be reached, the lender may take possession of the property by issuing court proceeding. You may wish to obtain legal advice and/or representation at the hearing, to ensure your rights are protected and explore potential defenses or alternative resolutions.
If the Court grants a possession order, a date will be set in which you should vacate the property. A property sold with vacant possession is more attractive to a buyer and enables a higher sale price. The lender will recover the outstanding debt and any surplus sale proceeds will be paid to the next person entitled; this may be another lender or yourself as the borrower.
It is essential to take proactive steps as a homeowner to avoid repossession of your home. You should keep lines of communication open with the lender and inform them of any financial difficulties which you are facing.
If you believe you are at risk of homelessness, you should contact your local authority who can provide advice and support in exploring housing options.
For more information please contact Pepperells Solicitors via online chat, email, Telephone or our contact page.
