Repossessed Homes UK

We have provided some useful links below in order to provide you with a further source of information regarding home repossession or who to contact in case your home has been or is due to be repossessed. There are also links to sites offering help and advice on what can be done to help you in this situation. We always recommend contacting the company who is intending to repossess your home and attempting to negotiate some agreement in order to continue repayments.

Please feel free to click on one of the links below in order to locate sites offering further help and advice regarding property repossession.

Citizens Advice Bureau
The Citizens Advice Bureau (CAB) are experts in providing free debt advice to members of the UK public. If you are facing property repossession or are in any kind of financial difficulty, the CAB will be able to speak to creditors and negotiate repayments on your behalf. By clicking on the link, you can find an office close to you and arrange an appointment to go and visit one of their advisors.

National Debt Line
The National Debt Line provide a telephone service which covers the whole of the UK. Call them on 0808 808 4000. They provide free debt advice and their website also contains very useful info to help those in debt. Budget planners, letters to send to creditors, facts sheets and information packs can all be downloaded for free from their website.

CCCS Debt Remedy
CCCS is a registered charity offering free debt advice over the phone. They can be contacted by calling 0800 138 1111. Their website also provides you with a free Online Debt Councelling Service which you can access online and allows you to remain anonymous.

Shelter
Shelter is the homelessness charity that runs a housing helpline, has a network of housing aid centres, and works with local citizens advice bureaux. They provide up to date info on repossession and have helplines providing advice and information.

Advice UK
AdviceUK is the UK’s largest support network for free, independent advice centres. AdviceUK was formed in 1979 as the Federation of Independent Advice Centres (FIAC).

Many people spend their lives juggling debts. With so many companies encouraging loans, mortgages, remortgages, credit cards, and debt advice agencies available to choose from nowadays it can be difficult to say no. Problems usually occur when circumstances change. these days, many people spend their time juggling remortgage payments, borrowing, using credit cards and it can only take one slip up to make something which was being barely managed to become unmanageable. In the current financial climate – with banks recalling loans, withdrawing mortgage offers and seeking emergency funding from the Bank of England – debt is front page news.

Regulation for Debt Agencies
In the UK, anybody can set themselves up as a debt adviser. In order to begin operations they require a Consumer Credit Licence which is available from the Office of Fair Trading (OFT). These debt advisers are not currently regulated by the Financial Services Authority. There are very few checks actually carried out by the OFT on these companies and they can have their applications processed within 25 working days.  Once they obtain the licence, it is valid for a 5 year period.

Paying for Debt Advice
Debt agencies will usually help their clients prepare a breakdown of all their income, expenditure and debts. They will often calculate a pro rata payment for each creditor based on the client’s available income and then correspond with creditors on the client’s behalf, offering to make monthly payments. It is not uncommon for debt agencies to charge considerable fees for their services.
A recent Radio 4 investigation into this subject gave the example of a woman with considerable debts who was charged an upfront fee of £1400 by a debt agency and then £53 per month – £43 per month went to the debt agency with the remaining £10 being apportioned to her many creditors. The woman was advised to ignore letters from creditors and ultimately ended up with County Court Judgments being entered against her. The advice she was given was simply wrong as a matter of law and fact. Needless to say, the money she paid to the debt agency – much of which was borrowed from friends and family – could have been far more usefully paid to her creditors.

Free Debt Advice
Although some organisations who charge for their services may give good advice, there seems little point paying for something when it can be obtained free elsewhere – especially if lack of money is the very problem on which advice is being sought. There are many organisations, both local and national, who can give excellent and accurate debt advice at no charge. The free debt counselling services should all be able to help with preparing a budget and negotiating with creditors. Three of the largest providers of free and independent debt advice are:

Citizens Advice Bureau (CAB) - A registered charity which offers free advice on a number of issues, CAB excels on debt and housing matters. They can help prepare a financial budget, negotiate with creditors, give advice on any court proceedings and provide advice on any state benefits to which people may be entitled. Advice is usually given in person or over the telephone. The CAB website is extremely comprehensive and is a good starting point for people worried about debt issues. CAB is the largest provider of free debt advice in the country.

National Debtline – Free and confidential advice given over the telephone. National Debtline is run by the Money Advice Trust (MAT) a charity formed in 1991 to increase the quality and availability of free, independent debt advice. The MAT is funded by the government and by a wide range of banks and finance companies. Calls to the Debtline are free and confidential – callers’ numbers are not displayed and callers do not have to give any personal details.

Consumer Credit Counselling Service (CCCS) – A registered charity which provides free advice on budgeting and the sensible use of credit, as well as on debt. Advice is provided through a free telephone helpline, online or in person. Anonymous counselling can be given online. The CCCS’s goal is to help people avoid getting into debt in the first place, and to help them arrive at a sensible and manageable repayment plan if they are in debt.
Demand for free debt advice is very high and it may not always be possible to get an appointment immediately. People should ensure that they seek advice as soon as they realise they are in difficulties – not when the bailiffs are knocking at the door.

At the time of a repossession hearing you can often expect a wait. Many home possession hearings are often dealt with by the courts on the same day with each case being allocated 5 minutes. This often runs over and as a result cases will be dealt with later than the scheduled time. This is not however an excuse to appear late, you are advised to turn up a minimum of 15 minutes before your hearing. Judges will not wait for cases, so if a borrower is not present at the relevant time, the possession order will be granted anyway.  If you are required to attend a repossession hearing and are running late, you should telephone the court and inform them so if there is a valid reason the case can be rescheduled.

Documents to Bring to Court
When attending a repossession case in court you are advised to being any supporting documents which may assist your case. Depending on teh cirucmstances, these might include:
·    Evidence of income and expenditure – pay slips, invoices, proof of benefits etc. This could result in the granting of a suspended possession order.
·    Letters from a borrower’s solicitor to prove that a sale is in progress, estate agent’s details. In this situation the magistrate will provide the borrower time to sell.
·    Proof of mortgage offer, evidence of re-mortgage application. Evidence provided will result in the courts giving you time to remortgage.

The Lender’s Solicitor
The solicitor or representative of the mortgage company or borrower will also be present at any court hearing. Before meeting with the judge they will meet you to discuss any possible way an agreement can be reached. Even at this stage many property repossessions are avoided.

The Hearing

Repossession hearings are generally informal affairs. They are often held in a small meeting room in a court. Whilst speaking to the judge, everybody remians seated and the the judge is addressed as Sir or Madam. Public entry is not permitted, only legal parties of the representatives are able to enter with the borrower and lender.
The judge will be provided with figures of the account on the particular repossession property. The lender’s representative will also provide any other documents to act as a support in the case for repossession. This may include a copy of the Mortgage Deed and copies of the details held by the Land Registry showing that the property is owned by the homeowner and has been mortgaged to the lender. The lender’s representative will also inform the judge if any agreement has been reached by the two parties involved.
The homeowner will then be given the opportunity to explain their side of the matter to the judge. You should remember that there are time constraints and some judges are also impatient. You should keep things concise and be prepared to explain what you intend to do. Borrowers should try to focus on:
·    why they were unable to make their mortgage repayments.
·    how they propose to clear the arrears or what they will do about them.
·    documents or evidence which will show they will be able to carry out what they are proposing eg. evidence of a remortgage, evidence of being able to make payments.

Suspended Possession Orders
If the judge on the day decided on issuaing a suspended possession order, the borrower should take special care to make repayments and avoid an eviction. They should budget accordingly.

Adjournments
There are several reasons why a judge might adjourn a mortgage possession case:
·    The lender has not provided the correct documents or there is a dispute about the level of the arrears. The judge might adjourn to a future date for the correct documents or a full statement of account to be provided.
·    The lender has made a payment which either clears the arrears or reduces them to below the level entitling the lender to a possession order. The judge will “adjourn generally with liberty to restore” –this means that the lender can ask for another hearing if the arrears build up again.
·    Occasionally if the arrears are low, or have already been significantly reduced by regular payments, the judge may say that the case will be adjourned for as long as payments continue. If payments are not maintained the lender can ask for another hearing.
·    If it appears that the borrower may have a defence, (rare in mortgage cases,) the judge will adjourn so that both sides can produce more evidence.

The Borrower’s Day in Court
Surprisingly, the majority of borrowers do not go to court for their possession case.
The hearing is a borrower’s chance to convince a judge not to make a possession order. Most judges do not want to make people homeless and will do what they can to prevent the lender from repossessing. However, if the borrower is not there, the judge is likely to rely on what the lender says. Unless an agreement has been reached, a 28-day possession order is almost inevitable.

In certain cases it is possible to still negotiate with a lender once a property has been repossessed by the court bailiff. Lenders sometimes agree to terms which allow a borrower to go back into the repossessed home. However, as the property repossession has been completed, the mortgage company is not obligated to listen to any proposal. The best way that a homeowner can regain access to their house is to carry out a large payment in a lump sum. If you are in this situation, being able to raise a lump sum can often make a lender change their decision. Once a repossession has been completed, the lender will receive the case again and begin the process of finding a new buyer. The repossession houses are often sent to auctioneers in order to get a quick sale.

Retrieving Belongings
If the property has not been evicted by the specified date, then the bailiffs will remove the homeowner from the property and with only what few belongings they can carry. There will be an opportunity to collect the remainder of the belongings on a further specified date in the company of a court appointed officer.

Even though a finance company has begun home repossession proceedings, it does not mean that there is still not an opportunity for the borrower to sell. A homeowner has the right to sell or remortgage their property at any time even up to the day when the locks are due to be changed by the court bailiff.

Selling Before A Case Goes to Court
A borrower in financial difficulty needs to always consider the option of selling their property before it gets repossessed. For example, if the homeowner knows that they are unable to make repayments and the property will be repossessed anyway. In this case if the property is repossessed, it will be more than likely that the home will be sold at auction at a lower price than if the borrower were to sell it themselves. People are often reluctant to take the option of selling due to sentimental attachment to their home and the thought of moving being too hectic.

If a homeowner decides that their best option is to sell the property before it is repossessed, they should speak with lender immediately and inform them of what they have planned. The lender may be inclined to provide the borrower with more time in order to sell the property, particularly if their is equity in the property. It is recommended that homeowners keep the mortgage company informed on the how the sale is progressing. Documents which will prove to the lender that a real sale is under way are mentioned below:

* Documentary evidence of correspondance from estate agents.
* Evidence of any offers which have been put forward at a price sufficiently high enough to recover the mortgage.
* Evidence of letters from a solicitor providing confirmation that a sale is in agreement or is in progress and the date of completion of the sale.

If the mortgage company is satisfied that they will be recouping their loan without having the inconvenience of going through the court process and then have to sell the property themselves, then there is a strong possibility that they will be willing to wait.

Selling Once Court Proceedings have Started
The majority of lenders will carry on with the repossession proceedings in court until they are provided with documentary evidence which illustrates that a property has been sold or is in the process of sale. The mortgage company will require evidence of an exchange of contracts, this to prevent issues of non sale.  People prematurely say their property is “sold” the moment any offer has been received. It is important to note that there is no guarantee of any sale until contracts have been exchanged.

Selling After the Possession Hearing
Courts will also provide borrowers the opportunity to remove all arrears on their mortgage account and avoid home repossession. This is done when the borrower goes ahead and carries out sale of the repossession home by themselves. When attending court, a borrower can advise the judge that the property is up for sale and is on the market. Upon hearing this many judges will grant a 56 day possession order. This will providethe borrower with more time and a good opportunity to make a sale. On occassion the magistrate may grant a period of 3 montsh to carry out the sale. The majority of court judges will want to see documentary evidence that the property which has now been listed has been offered at an adequate price whcih will cover the mortgage when sold. A case can also be adjourned when there is evidence that a sale is pending. This will provide the homeowner with the opportunity to complete the sale and hence avoid home repossession.

Selling Once an Eviction has been Scheduled
A borrower has the ability to prevent an eviction from taking place by selling the repossession property. The court judge will expect to see clear evidence illustrating a sale is pending. In a case where the property is being sold at lower price than the debt on the mortgage, it will be highly unlikely that the magistrate will put a stop on the eviction. If the homeowner can show that they are able to provide money to cover the shortfall on the mortgage then the courts may consider stopping the eviction.

Re-mortgaging
It is important to remember that although it may be easy to find a company which will provide the homeowner with a remortgage on their property, the deal which will be put on the table may not be very competitive and repayments may be extremely high. Another point to note is that missed payments on the original mortgage agreement can result in stains on a credit report and thus limit the options available when it comes to finding a remortgage.

The courts and lenders both view a remortgage as similar to an actual sale. If you are remortgaging at this stage of the repossession process its important to make sure that the lender is kept in the loop as to what is actually happening. They should be provided with any documentary evidence which proves that a remortgage is due to be completed. Judges also can provide a homeowner with further time and stop a repossession if they are happy that a remortgage is due to be completed.

Conclusion
It is important for borrowers to highlight and act quickly as soon as they begin to struggle to make payments. This will give them more time and improve the chance of avoiding repossession by selling their property for a better price than an auction would guarantee or getting a remortgage at a more competitive rate than they would get once more repayments have been missed and their credit report is tarnished.