How Long Does Repossession Take?

The fear of repossession blights many households across the country, especially with the current instability in many job sectors. Thankfully, it is not a particularly fast process, enabling you to hopefully get a plan in place to avoid repossession.  On average, you can expect the repossession process to be worked through over months rather than days. Each case is different though and some repossessions could be completed in as little as 1-2 months, but the average is closer to 6-12 months.

What is a house repossession?

Repossession of a house occurs when ownership of a home is taken over by a mortgage lender. It will normally take place when the homeowner has fallen behind significantly with their mortgage payments and is not making any attempts to make a payment or stick to a payment plan agreed with the lender. It’s a last resort and not something lenders are keen to pursue. After all, it costs them money to take people to court!

Will my house be repossessed if I miss one mortgage payment?

Missing one payment isn’t a huge concern to your lender but it will certainly get them to keep an eye on you a little more. If, for example, you miss one payment but then contact the lender to organise paying this sum back, no action will be taken. If though, you miss one payment, then another and then another and make no plans to ask for help or pay it back, they might start to look at repossession.

Luckily, the mortgage charter set in place by the government means that homeowners will not be forced from their homes within a year of their first missed payment unless there are specific circumstances.

How long does it take for repossession?

Repossession typically takes around 6-12 months from the time you first hear from your lender. This normally occurs after you’ve missed three or more mortgage payments. It could happen sooner though.

There is a specific framework that must be followed in accordance with the law, and this means that certain steps must be taken to ensure all avenues are exhausted before a home is claimed by the lender.

Depending on how proactive and cooperative you are may determine how fast the process can be worked through. For example, if you continually ignore the lender or the courts, the process will likely be much quicker than if you were able to work with them to find a solution or present a strong case in court.

Lenders normally begin the process after 3-6 months of missed payments. A notice of legal action will be issued if no agreement is reached but it can take a further month or two before your day in court.

The resolution of the court hearing could see repossession take place approximately 2 months later but if the judge grants a delay, this time can be extended significantly.

The repossession timeline

As mentioned above, repossession must follow a specific structure for it to be legally enforced. Should a lender fail to abide by the law, they may not be able to pursue repossession as fast as they hoped. Likewise, you also have legal obligations and if you do not fulfil yours, repossession may come around much quicker.

The timeline we’ve created below is the typical route to repossession.

Contact from mortgage lender

The lender will reach out to you regarding missed payments. They are duty-bound to come up with a repayment plan. This could include:

• Payment holidays
• Temporary reductions in payments
• An extension to the current mortgage
• A switch to a different mortgage product (interest-only mortgage for example)

If you are already concerned about missed payments, contacting the lender first will be a step in the right direction. If they contact you first, you mustn't ignore them. Their reaching out isn’t to take your home from you, it’s to find a way to help.

Start of court action

If the proposed plans from the lender aren’t suitable or you have ignored their attempts to speak to you, they will likely start legal action.

This will begin with you receiving written notice of the intended action. It needs to be issued at least 15 days before any hearing and must demonstrate that the lender has attempted to resolve the situation, and that repossession is the last possible avenue for them to pursue. They will also need to show the level of arrears; how many payments have been missed and what the remaining mortgage balance is.

Court issues paperwork

The court will send you a variety of letters and forms. All must be kept and completed where necessary.  Within these will be an N5 form. This is the form showing that the lender wishes to claim the property. You will also have the chance to document your financial situation and what you can afford. Be as open and honest as possible as this will help your case. Hiding information will only make it more likely that you may lose your home.

The hearing

You’ll be requested to attend the hearing and present a case for why repossession shouldn’t take place. The lender will do the same arguing the case for repossession. As this can get quite complex, it is often worth seeking legal advice either from a court-appointed legal representative or a charity that provides free legal assistance.

The court will review the lender's concerns and see if they have followed the correct protocol of providing you with payment options, proper communication and suitable timelines to reply.

They will then look at your case and see whether you have been proactive and tried to help settle the situation.

With the evidence provided, they may then determine that repossession is the only option, but they may also put a new payment plan in place. Due to the complexity of these cases, the court may decide on an adjournment and give you more time.

However, they might issue an outright possession order allowing the lender to take your home, a suspended possession order where you must commit to payments under a strict schedule or dismiss the case entirely if a suitable payment plan has been made with your lender.

Eviction

If the court determines that the lender can proceed with repossession, a date will be given when you have to leave the property. The lender will then sell the home to recover any outstanding amounts. Should there be cash remaining after all costs are covered, any remaining balance will be paid to you.

The sale must be completed fairly with the home selling at its best possible price.

Can I delay house repossession?

You can certainly try. Using the N244 form you can ask a court to cancel a possession order. It must be fully completed and submitted with any evidence that you believe helps your case. The judge will then review it and decide whether there should be a hearing to cancel the repossession.

Is there an alternative to repossession?

There is. If you are concerned that your home may be repossessed or you won’t be able to meet any payments for it, you could look at a fast house sale specialist. Companies like Bettermove guarantee the sale of your home within a rapid timeframe, enabling you to satisfy the lender by paying them back what you owe quickly. Our process means that we can buy your home in as little as seven days, or present it to a network of exclusive cash house buyers who can wrap the deal up in 30 days or less. Speak to us today to find out more.