Stage 1 Of A Repossession - Before Court Proceedings Begin

If you have gotten behind on your monthly mortgage repayments then the first step a lender will take is to send a letter out. This will be a polite letter basically reminding the homeowner that they are behind on their repayments and this can be sent after you have missed one of two monthly repayments. The contents of the letter will usually ask that you get in touch as soon as possible with the lender to discuss how you intend to catch up and the reasons for getting behind on the repayments. They could also ask if your financial future is secure and if problems have passed or whether it is likely to be a long term situation which will affect your mortgage repayments in the future.

The most important thing to remember at this stage is not to ignore the letter. If you take no heed and do not seem interested in making amends then the lender will take proceedings to the next step. However replying immediately will show you are willing to work out a proposal and it might end here if the two of you can compromise.

If you are not be able to keep up with any agreement you make then the lender will take the next step. This time the lender will inform you by letter that you have seven days to make an appointment to discuss your situation further or bring your mortgage up-to-date. The letter will conclude that unless you comply they will take the advice of their solicitor. Solicitors are usually less lenient so if possible you should avoid this stage by getting in touch and working with the lender to negotiate repayments in the first instance.

Once you have received a letter from the solicitor on behalf of your lender then you will have a period of no longer than seven days to clear your mortgage arrears or at the very least to present a proposal to pay off what you owe within a decent time frame. If your proposal is not acceptable then court proceedings may begin in order for the lender to seek repossession. It is imperative that you do make a proposal to clear off your arrears even if the lender or solicitor does not agree to it. At least you will have shown good faith at attempting to remedy the situation and a court will take this into account if your case should be presented before them.

The information above regarding repossession is meant to assist you but is not definitive. You should not rely on any repossession information published on this page. You are advised to seek independent legal advice at an early stage.