Understanding Repossession
What is a mortgage?
A mortgage is basically a different name for a loan, that's been secured on an asset, which is usually a property, that is, a house, and you can have a number of different mortgages on that same asset. You get first charge, second charge, third charge, maybe even fourth and fifth. But they are all called mortgage but quite often under different names. A secured loan is a mortgage, and any form of finance that's secured on your house is a mortgage.
What is repossession?
Repossession is when the asset that's been charged by a mortgage, whether there's been a default on the loan, non-payment or whatever reason and they take you to court and ask for the asset to be repossessed, that the asset can be sold to pay off the mortgage.
Can any of my assets be repossessed?
Generally, assets that have been secured by a formal charge can all be repossessed. Generally, charges are reserved for higher ticket value items such as houses and cars even, but generally that's it. Any other items can be repossessed but that generally is done by a bailiff through the courts for a non-payment of any particular bill.
Under what circumstances would my home be repossessed?
A home can be repossessed generally for non-payment or non-compliance of that mortgage offer, when the contract has been drafted up at the start, when you signed the mortgage offer. That's how a lender can seek to go to the courts for repossession of the asset.
If my home is repossessed can I ever claim it back?
You can claim back a house from repossession, but it has to be very fast - within about seven days of the item being repossessed or the house being repossesed. All of the arrears have to be paid off in full to achieve the asset retrieval.
Who repossesses my home?
The actual person that repossesses a home is a bailiff, but a a court-ordered bailiff is not allowed entrance without the specific court order allowing him to do so.
Who decides that my home should be repossessed?
A judge will have made a decision to repossess a property based on its passed failure or non compliance of your mortgage contract. That can typically have happened over a period of three months to a year long. It's not a very quick process, but it's a judge that actually decides whether a property can be repossessed or not, not the lender.
What is the difference between a possession hearing and a repossession hearing?
The difference between a possession or a repossession hearing is that the legal process is that the solicitors for the lender and the judge will be referring to the hearing as a possession hearing, and until they've actually recieved a possession of the property, the property cannot be repossessed. So the general public refer to it as a repossession, but the legal profession refers to it as a possession hearing.
