Introduction
Are you facing court action from your mortgage lender? This guide will help you understand your rights and what steps you can take to protect your home. It’s important to know that being taken to court doesn’t mean you will lose your property. If you need assistance, Contend’s highly trained AI legal experts are here to provide guidance and support, making it easier for you to navigate your legal challenges. Discover how you can effectively address your mortgage issues and secure your peace of mind with Contend, the Easiest Legal Help in the UK.
Facing court action from your mortgage lender can be stressful, especially if you’re struggling to keep up with payments. However, it’s important to know that being taken to court doesn’t automatically mean you’ll lose your home. Here’s what you need to know if you find yourself in this situation.
Understanding the Court Papers
If your lender decides to take you to court, you will receive court papers in the mail. If the case was filed online, you’ll also get access to the Possession Claim Online (PCOL) service, where you can view your documents and respond to the claim.
The court papers will typically include:
- A claim for possession of property, detailing the reasons for the court action.
- Evidence that your lender wants the court to consider.
- A defence form that you can fill out to explain why you believe you should be allowed to stay in your home.
The court papers will also provide a date for your hearing, usually within eight weeks of when you receive them.
Seeking Help Early
It’s crucial to seek advice as soon as you receive court papers. An adviser can help you understand your options and assist you in filling out the defence form. If you’re still trying to negotiate with your lender, they shouldn’t initiate court action. If they do, it’s important to reach out for help.
Can You Stop the Court Action?
You might be able to prevent court action by negotiating a payment plan with your lender. Lenders are required to treat you fairly and should give you a reasonable chance to address your arrears. For more information on managing mortgage debts, consider trying Contend’s legal expert chat. Their highly trained AI legal experts will work with you to provide guidance and help you understand and resolve your legal problems.
Special Considerations During the Pandemic
If you’re at higher risk of severe illness from COVID-19, inform your lender. They may pause any repossession actions against you. If your lender still attempts to repossess your home, don’t hesitate to seek advice from Contend’s legal expert chat.
Breathing Space
If you need time to sort out your finances, the government offers a scheme called Breathing Space. If eligible, you could receive 60 days during which your creditors cannot contact you, take action to collect debts, or add interest. This applies to mortgage arrears, credit cards, loans, and more. Speak to a debt adviser or try Contend’s legal expert chat to see if this option is right for you.
Getting Legal Assistance
Consider consulting a solicitor for legal advice regarding your case. If you’re on a low income or receive benefits, you may qualify for legal aid to help cover costs. You can check your eligibility for legal aid on GOV.UK.
If you don’t have a solicitor, you can speak to a duty solicitor at the court. They can provide advice but may not be able to represent you in the hearing.
Completing the Defence Form
Once court action has started, fill out the defence form, even if you’re still negotiating with your lender. If you’re unsure how to complete it, write your thoughts down on a separate piece of paper and send that instead.
Make sure to return the form within 14 days. If you miss the deadline, submit it as soon as possible, even if it’s on the day of the hearing. Keep a copy for your records.
What to Include in Your Defence
When filling out the defence form, provide details about your financial situation and any efforts you’ve made to address your arrears. Mention if you disagree with the lender’s claims or if they haven’t given you a fair chance to resolve the issue.
If your arrears are related to the pandemic, indicate this on the form. The court will take your circumstances into account.
Requesting a Time Order
You may also be able to ask the court for a time order, which can extend the time you have to repay your mortgage or reduce your payments. This is an option if you expect your financial situation to improve.
Preparing for the Hearing
Attend the court hearing, even if your lender says it’s not necessary. If you can’t attend in person, inform the court as soon as possible; they may allow you to participate via phone or video.
Arrive early and check in with the usher when you get to the court. If you have someone who can support you, consider bringing them along.
What Happens During the Hearing
Most hearings are brief, lasting around 15 minutes, and are held in private. The judge will want to ensure both parties have followed the necessary procedures before the case reaches court.
If the judge finds the case straightforward, they may make a decision right away. In more complicated cases, they might adjourn the hearing for further instructions.
After the Hearing
If the court dismisses the case, it means that the action is closed, but you will still need to address your arrears. You may have to pay court costs, which can be added to your mortgage account.
Conclusion
Being taken to court by your mortgage lender can feel overwhelming, but understanding your rights and options can make a significant difference. Seek advice early, fill out your defence form carefully, and attend your court hearing. Remember, you don’t have to navigate this process alone—help is available through Contend’s legal expert chat, the Easiest Legal Help in the UK.
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