Introduction
Are you struggling with mortgage arrears and facing the possibility of losing your home? This comprehensive guide will help you understand your rights and the steps you can take to navigate this daunting situation. From the court process to potential solutions like the government’s breathing space scheme, we cover essential information you need to know. If you require assistance, Contend’s highly trained AI legal experts are here to support you in understanding and resolving your legal issues. With Contend, you can access the easiest legal help in the UK.
If you’re facing the threat of losing your home because of mortgage arrears, it’s important to understand your rights and the process involved. Here’s a straightforward guide to help you navigate through this challenging situation.
The Court Process
Before your mortgage lender can evict you, they must take legal action and go to court. This is known as “taking possession action.” If you haven’t had a court hearing, your lender cannot force you to leave your home. If you receive a court notice, it’s essential to know what steps to take next.
If the court rules that you must vacate your property, you don’t have to leave immediately. There are ways to delay or potentially stop the eviction process altogether.
Eviction Requires a Warrant
Your lender needs a “warrant of possession” to legally evict you. They will apply for this warrant after a court order has been issued. Once they apply, you will receive a notice detailing when you are expected to leave. If you don’t leave by the specified date, bailiffs may be sent to carry out the eviction.
There are different types of possession orders: – Outright Possession Order: If you don’t leave by the date specified, your lender can apply for a warrant. – Suspended Possession Order: If you fail to comply with the terms of this order, your lender may also seek a warrant.
Even if a warrant has been issued, there are still actions you can take to remain in your home.
Breathing Space: A Temporary Relief
If you need more time to figure out how to handle your mortgage arrears, consider the government’s breathing space scheme. This program can provide you with 60 days during which your lender cannot: – Evict you – Contact you for payment – Add interest or charges to your arrears
However, you must continue to make your regular mortgage payments. If you find yourself in a more difficult situation after starting breathing space, your lender can still reach out regarding those new arrears. This breathing space can be availed only once every 12 months, so it’s best to consult an advisor to see if you qualify.
Challenging the Court’s Decision
If you believe the court’s decision was incorrect, you might have options to appeal or request that the possession order be canceled. This could lead to another hearing where you can present your case.
If you can afford to pay your arrears, you can ask the court to suspend the possession order or warrant. This would allow you to stay in your home as long as you keep up with your mortgage payments and any arrears.
To request this, you’ll need to fill out form N244, which you can obtain from the court or download from GOV.UK.
Vulnerable Circumstances
If you or someone living with you is in a vulnerable situation—such as being disabled or ill—make sure to inform your lender. They may agree to pause the eviction process. If your lender does pause the eviction, notify the court and the bailiffs to reschedule.
Considering Selling Your Property
If you think selling your property is the best option to clear your mortgage arrears, it’s usually more beneficial to sell it yourself rather than letting your lender do it. You can request the court to suspend the warrant of possession to give you time to sell. Again, you’ll need to fill out form N244 for this request.
Preparing for Eviction
If an eviction is imminent, the bailiffs will provide you with a “notice of eviction,” which states the date and time of the eviction. They must give you at least 14 days’ notice. If there’s a delay, they must provide an additional 7 days’ notice.
Handling Your Belongings
When you’re evicted, you must remove all your belongings. It’s advisable to empty the property before the bailiffs arrive. If you cannot store your items, contact your lender to see if you can leave them in the property temporarily. Once you’ve been evicted, returning to collect your belongings can be challenging.
What Happens During the Eviction
During the eviction, bailiffs are not allowed to use violence or threats. If you refuse to leave, they may use reasonable force to remove you, but they cannot damage your property. The bailiffs may change the locks to prevent you from re-entering the property.
After the Eviction
Once evicted, your lender will typically sell the property. You will still be responsible for the mortgage payments until the sale is finalized, even if you no longer live there. If the sale doesn’t cover the full amount you owe, you may face a “shortfall,” meaning you’ll still owe money. It’s crucial to seek advice if this happens.
Complaining About Your Lender
If you feel your lender has treated you unfairly, you can file a complaint with the Financial Ombudsman Service. This could be for reasons such as selling your property for less than its market value or taking too long to sell it, which increased your arrears. More information can be found on the Financial Ombudsman website.
Finding New Housing
If you find yourself homeless after an eviction, your local council may have a responsibility to help you find somewhere to live. Don’t hesitate to reach out for assistance.
Moving Forward After Eviction
Getting a new mortgage after an eviction can be difficult. Your credit rating will reflect missed payments, which could hinder your ability to secure a loan in the future.
If you’re facing eviction due to mortgage arrears, it’s essential to stay informed and proactive. For guidance and support, try Contend’s legal expert chat. Contend’s highly trained AI legal experts will work with you to help you understand and resolve your legal problems. Contend is the Easiest Legal Help in the UK.
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