1-4 months – Payment Reminders Your lender’s Arrears Collection Department will contact you if you have missed several payments, and at this time it may be possible to arrange a way to clear your arrears over a certain period of time, if you try to explain to them the reasons why you have not paid your mortgage.
4-6 months – Letter from Solicitors If your arrears are 4-6 months down the line your account will be handed over to the lender’s solicitors in order for them to chase the monies which you owe.
6 months+ – Court Proceedings You will receive a letter from the court known as a Summons and it is very important that you reply to this as failure to reply may harm your case. The Hearing will then take place where the judge will listen to evidence from both you and the lender and the decision is then made to:
- adjourn (postpone)
- strike (cancel)
- an agreement is made where you can stay in your home if you pay installments on the arrears.
- give you time to sell your property to avoid repossession, or
If the court decides that repossession is the only alternative a court order will be set for a particular date by which you are due to leave the property. If you have not left by that date then a bailiff’s warrant can be obtained and you will be removed from your home. There is an option known as sell and rent back which will allow you to stay in your property even after you have sold it.