House Repossession Advice

Facing repossession is a serious challenge, but most possession claims do not end with someone losing their home. You have options to protect your property and take control of your financial situation. The guide below explains the steps you can take to secure your home and your vehicle.

What do I do if I’m threatened with repossession?

If you miss rent or mortgage payments for a few months, your landlord or lender might take action to repossess the property. It is important to stay calm and get professional advice as soon as possible.

What should you do if you get a court letter?

You will usually receive a possession claim form in the post. Do not delay opening anything official. This letter will likely include details about a hearing at your local county court. It might also include:

• A description of your property
• Information regarding the Consumer Credit Act 2006
• The current state of your account
• Details of past attempts to repossess your home
• Exactly what the lender is asking the court to do

You will also receive a defence form called an N11M if it’s a mortgage and an N11R if it’s rented. You need to complete this within 14 days. This form is straightforward and lets you explain your situation. You can use it to say why you are in arrears and how much you can afford to pay to clear them.

Do you need to attend the court hearing?

We always recommend that you attend the hearing. It is private and will involve only you, the district judge, and the solicitor for your lender. It gives you a chance to share your proposed repayment plan safely.

If the judge agrees that your offer is fair, they might grant a suspended possession order. This lets you stay in your home as long as you pay your normal rent or mortgage plus the agreed amount towards your arrears.

If you do not keep to this agreement, the lender can apply for an eviction warrant without going back to court. Court bailiffs will then give you a date to leave the property.

What if you cannot afford your rent or mortgage?

If the court decides you cannot realistically clear your arrears, they will likely make a possession order. This usually takes effect in 28 days.

If your financial situation improves, you can apply to the court at any time before the eviction. You will need to convince the judge that you can now afford the payments.

If you are struggling to manage your finances, we might be able to help. We offer debt advice on a variety of debt solutions, and if you’re struggling to make ends meet, we can talk you through solutions. You don’t have to deal with debts alone. We’re on hand to offer support and advice.

How does car repossession work?

When you take out a hire purchase agreement, you are hiring the vehicle until you make the final payment. If you fail to keep up with your payments, the lender might try to repossess the car. They must send you a default notice before they take further action.

If you have paid less than one third of the borrowed amount, the lender can repossess the car without a court order. However, they cannot enter your premises without your consent. If you do not give consent, they must apply to the court. If you need time to gather funds, you can apply for a time order form called an N440 providing you have been issued with a Default Notice by the finance company. This form can also be used to ask if the terms of the agreement can be amended

If you’ve paid one third or more of the value of your car, it’s protected. The lender must get a court order to take it back. If you want to keep the car, you can contact the lender to negotiate smaller payments.

Get Support Today

You do not have to deal with debt alone. If you need to attend a hearing, your local Citizens Advice Bureau often has specialists who can go with you.

If you are struggling to manage your finances or maintain a hire purchase agreement, get free, confidential advice online or call 0800 316 1833 to speak to one of our experts. We’re here to help you understand your options and find a practical solution.