A Brief Description Of What You Need To Be Aware Of Regarding Mortgage Arrears And Repossession

January 31, 2008 2:20 pm admin Business

Here is a brief description of what you need to be aware of regarding mortgage arrears and property repossession. The rent back company are constantly updating this section to provide you with more details regarding the law. If you are still unsure about what to do to stop repossession, do not hesitate to contact a rent back company.

What Are The Stages Involved in a Repossession Process?

1. When you get into mortgage arrears and you fail to come to an arrangement with your mortgage lender, they will issue a court action. Anything from 2 to 6 months of arrears could result in the lenders proceeding with legal action and pursuing property repossession.

2. At the court hearing, if you could present your ability to meet the current monthly installment and to pay a contribution towards the arrears, the judge will almost always suspend the Possession Order. If the judge is not satisfied you could meet the payments, or you could not promise to repay, a Possession Order will be made.

3. If a repossession order is made, the mortgage lender will submit a Possession Warrant to evict your property typically 2-4 weeks later.

4. If, at court, you promised to keep up future payments but defaulted later, the lender will apply to the court for eviction. You will receive a date and time from the court informing you when you must leave.

In time-sensitive situations where an eviction is very close the rent back company can stop property repossession by paying off your mortgage arrears immediately and arrange for the sale to proceed afterwards.

If you have a large amount of unsecured loans, the rent back company are also happy to negotiate, on your behalf, with the loan lenders to reduce the debts.