House Repossession Assistance

Repossession your legal rights

Repossession your legal rights

If you are given a loan or a mortgage your lender will want some sort of security so if you fail to pay off the debt you owe they have the right to recover their costs by repossessing and selling your house. While they do need this security, the law does try to protect home owners against unscrupulous lenders through laws such as the Law of Property Act 1925 and the Consumer Credit Act 1974.

What rights do I have as the borrower during the repossession process?

In order to get embroiled in a repossession process you will have fallen behind in your mortgage repayments.

Your lender has to give you notice of both you falling behind in payments and then their intention to take you to court and repossess your property if you fail to address the situation. Under the Administration of Justice Act 1970 the borrower can postpone the repossession if they can show that they are likely to be able to pay off the arrears. A lender cannot repossess your house if you have shown the court that you can pay the money that you owe, however if you fall behind in repayments again your house could be repossessed by the lender.

Can I postpone repossession so that I can sell my house?

No. A repossession will not be postponed by the court for you to make arrangements to sell your property unless you already have evidence that there is buyer interested in the house or if the sales process has already begun.

This is why it is important if you are considering selling your house to cover your mortgage arrears and stop repossession, you must do so before the court hearing.

How can the Consumer Credit Act protect me against repossession?

The Consumer Credit Act 1974 allows the court to renegotiate the terms of your original mortgage to meet new requirements. For example you could switch to a longer term mortgage, which would increase the amount you owe but would decrease your monthly outgoings so that you are less likely to fall into mortgage arrears again. In almost all cases your mortgage lender would rather arrange a deal than repossess your property, and will only do so as a last resort. Speaking to your lender about your financial situation is the easiest way to avoid repossession and the legal process associated with it.

What can I do if a repossession order has been issued?

If the judge rules in favour of your lender and you fail to reach any other agreement, then your house will be repossessed. At this time you have little choice left, they have the legal right to your house. The repossession date will be specified at court. If you fail to leave the property by this time then your lender will apply for bailiffs to remove you from the property. It is within their rights to do so and there is no negotiating with bailiffs.

As the repossession process develops your rights as a home owner diminish, if you are facing bailiffs you have no choice whatsoever. Because of this it is important to address the problem of mortgage arrears as soon as possible, negotiating a deal with your mortgage lender or considering selling the property yourself before the worst happens.

Find More Avoid Repossession Articles