What is Repossession?
When you take out a mortgage with any lender – be it a building society or bank – they will protect their interests by registering what is known as a “legal charge” against the property at Land Registry.
They do this to ensure that the lender’s loan is satisfied first when you sell your property and they are the first creditor to be paid if you have other loans.
The “legal charge” or “Mortgage Deed” is a document which states that if you do not keep up with your payments on the loan, the lender can “repossess” your property and sell it to pay back the loan. Typically a lender will instruct legal proceedings, if you miss more than two payments, to recover the monies owed.
There are several stages to stop repossession that you will have to go through before you are provided with an eviction date. If payments are not satisfied the lender will instruct solicitors to apply to the courts for a repossession order to repossess the property.
Once the property is repossessed you will be “evicted” and then sadly left homeless. The lender will look to sell the property for a quick sale, at a greatly reduced price and any monies left over are then repaid to.
However, Courts do not like to foreclose on property and it may be better for you to sell the house quickly.
If you would like to Stop Repossession then please click here!