Given the current economic climate, and with interest rates and inflation rates rising to levels that we have not seen for a long time, this will no doubt have an unfortunate impact on household finances and increase pressure on household budgets as the cost of living rises.
This may well impact on the ability to pay mortgages and loans, which may in turn result in the threat of repossession.
If you are the subject of threats of repossession, or are subject to court repossession proceedings, whether it relates to your house, or any other asset, then call our mortgage repossession solicitors today.
It’s very reassuring as an owner of an SME to know that you are getting excellent legal advice at a reasonable cost.
Before a mortgage lender goes to court and applies to repossess your home, they must:
If your lender commences court repossession proceedings against you, the court should send you:
Our solicitors specialising in repossessions can assist you with completing the defence form, however to do this we will require the following information and documentation:
What is a house repossession?
This is a legal process where a mortgage lender or secured loan provider takes ownership of a property normally because of mortgage arrears that have accrued and the owner’s inability to clear the debt.
What happens at a repossession hearing?
The Court will consider the claim made by the mortgage lender or secured loan provider and the evidence provided by them to confirm that the debt is due and owing. The Court will also consider the borrowers position and any offers of payment they are able to make. They will also consider who lives in the property, the education of any minors, the health and welfare of anyone residing in the property and their ability to pay back the debt. The court will then make an appropriate order which could include an outright possession order or a suspended possession order allowing time for repayment to be made.
What happens if my home is repossessed?
The lender will sell your property and use the sale proceeds to redeem the debt together with any interest that has accrued and any legal costs. If there are any surplus funds once the debt has been repaid, this money will be paid to you. If the sale of the property has failed to provide sufficient funds to repay the debt in full, the lender will look to you to repay the balance and you should make arrangements for repayment as soon as possible to prevent any further action from being taken against you.
How will a repossession affect my credit score?
It can cause significant damage to your credit score resulting in a dramatic drop making it difficult for you to secure credit in the future.
