Homeowners and Mortgages
It is unusual for individuals in the United Kingdom owning their homes outright with the more common route being that they pay a deposit on the property initially and secure a mortgage on the value of the property whereby they effectively borrow the money to pay for the property and pay it back in installments to the mortgage company.
Problems with the economic downturn
When the economic downturn first became a reality in the United Kingdom in 2008 the issued faced by many families when members lost their jobs, were made redundant or may have had certain issues with the family business was that they started to default on making the payments to the mortgage lender.
What can happen if the individual owning the property fails to make the payments?
It is a distinct reality that if an individual who owns a property fails to make the payments back to the mortgage lender on a consistent basis the house can subject to a repossession order.
What does this mean?
A repossession order is an order which is applied to the Court by the mortgage lender in order for the property which is the subject of the mortgage to be repossessed by the mortgage lender enabling them to recoup back some or all of the value of the property.
How will the value of the property be recouped?
It is likely that the value of the property will be recouped by the house being sold in an auction following the repossession order.
What should I do if I have been provided with a repossession order?
If an individual has received a repossession order there may still, however, be an opportunity to prevent the home from being repossessed.
Once proceedings for repossession have begun there is quite a big time period that will be allowed before a repossession order is enforced. In some cases the order can be adjourned during which time the individual owner of the property may be able to pay off the arrears owed.
What happens if I know that I will be able to make the payments?
If an individual owner of a property knows that they will be able to make the payments to the original mortgage agreement the court may “stay” the order.
What does this mean?
This means that an order will be made for repossession but will not be enforced for an agreed amount of time which will give that individual the opportunity to repay the amount owed or to repair the breach in the original agreement.
For more information on:
- What happens if there is no way in which I will be able to make the payments?
- Will repossession always be used as a last resort?
- Was this the case?
- Is it just individuals who are having money troubles that run the risk of repossession?