If you are facing repossession and have tried speaking to your lender and explored the options outlined in the Mortgage Arrears - The Basics
article, then there are still further options.

You may have reached a stage where you know you cannot pay off the arrears and what you can pay is not acceptable to the lender or the courts. In this situation, if you do nothing, the lender will obtain a possession order and serve an eviction notice. Typically you will only have a short time between receiving the eviction notice and having to leave your property (two weeks or less), though there can be several months between falling into arrears and actually being evicted.

Once the lender has possession, they will normally try to sell the property through an estate agent or at auction. If the property is sold for less than the total mortgage plus arrears plus fees and costs owed, then the lender can pursue you for the difference. For this reason you would be advised to explore other options, as this route leaves you without any control over how much the property sells for.

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Eviction is the last stage of the repossession process, but even then it’s not too late to save your home. 

Stage 5 - Possession Warrant or Eviction Notice

If you have defaulted on a Suspended Possession Order or are still in your property after your Possession Order date, the lender will apply to the court for formal eviction. You will receive a letter from the court showing the exact date and time by which you must have left the property. This is often 7-14 days from date that the eviction notice is granted.

At the notified date and time, a court bailiff, representative of the lender and a locksmith will arrive at your property to formally take back control and possession of the property. You will have 10 minutes to collect your belongings and leave. Generally, after 10 minutes the locks will be changed and you will be allowed one further visit to collect any remaining belongings after approximately 2 weeks.
Warning! Do not be fooled into thinking this will not be followed through. Even if you are ill, elderly or have young children this process will be followed regardless of any excuses you feel you may have.

Action you can take:

Explore your options (see the “Repossession - The Options” articles). It is not too late to act and save your home.

If have missed any mortgage payments, or paid less than you are supposed to each month, then you are said to be in arrears with your mortgage.

In the situation where mortgage arrears exist, the lender will want you to clear the arrears as soon as possible. If you don’t clear the arrears or you allow them to increase futher, the lender will seek to evict you from your home. They will do this by applying to the courts to “seek possession”.

The lender may allow you some time to sort things out, but they will only do this if you get in touch with them. It’s important that you contact your lender as soon as possible to discuss your situation and aim to come to an agreement that suits you and is acceptable to them. The key is to communicate and act quickly.

Some options you can consider are to assess your household income and costs and see if you can make any savings to reduce costs and raise more money to increase income. A good website that is packed with advice on ways to save money on household bills is www.moneysavingexpert.com. Then the extra money can go towards the mortgage.

You can also consider re prioritising your household expenses. In terms of bills, the most important are mortgage payments, council tax and utility bills. The national debline and consumer credit counselling service may be able to help you understand your household income and expenses better by putting together a budget planner. They will be able to advise where you can cut back. One common area is credit card repayments, and they may be able to negotiate reduced monthly payments - as little as £1 per month. Again savings here can allow you to pay
more towards your mortgage.

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