How do I stop repossesion?
Repossession or sometimes referred to by the American term foreclosure is the process of legally seizing a once owner occupied property from the owner for failure to meet the contracted mortgage obligations. In other words if you fail to make the monthly mortgage payment and your begin going into a substantial amount of arrears you will lose your home. Furthermore is that when the house is sold to repay the loan at the present market value and there is a negative balance between what the selling price was and your contracted mortgage obligations the creditor has the right to still pursue you to make up the difference (often referred to as the shortfall).
Most lenders are insured or hedged for such events by specialist insurance firms, and it is often these insurers that take on the responsibility of chasing you up.
Here is a complete detailed rundown of the foreclosure process prior to a completed repossession of a property.
- A due payment doesn’t reach the lender leading the lender to send a simple reminder letter.
A follow up phone call is sometimes made as well enquiring why the payment has not reached the lender.
- After a number of letters the borrower will then receive a letter from an appointed solicitor, who are either in house or a contracted firm. The letter will state that they will pursue legal proceedings if contact is not made within a certain amount of time.
- The appointed legal representative of the lender will apply for a Court Summons being issued on behalf of the lender demanding you make an appearance in court with enough notice for the borrower to begin making arrangements for legal services if required.
