What to do if you face repossession

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’s important to stay calm and get professional advice as soon as possible.

Your mortgage lender cannot repossess your home without court permission. To get this, they must apply to your local County Court and clearly set out the reasons why a judge should allow them to repossess the property.

What should you do if you get a court letter?

If your lender applies for a Possession Order, the court will set a date for a hearing. You will usually receive a Possession Claim form, known as Form N5, in the post. Do not delay opening official correspondence. This letter will show the date and time of your court hearing, which usually takes place between 21 days and eight weeks from the date the form is issued.

The claim form will be accompanied by a Particulars of Claim, or Form N120. This document usually contains:

• 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. The hearing is private and will take place in the judge’s private room, usually lasting no more than 10 minutes. The only people present will be you, the district judge, your lender’s solicitor, and your representative, if you have one. It gives you a chance to share your proposed repayment plan safely.

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.

If you need further advice on the day, the Housing Possession Court Duty scheme operates in County Courts across England and Wales to provide specialist advisers who can help or represent you.

What are the possible outcomes of a court hearing?

After considering the evidence, the judge will make a decision. There are several possible outcomes. The judge could either:

Dismiss the case

• This means the Judge will strike out the claim as there is no case to answer – the arrears may have been repaid since the hearing was scheduled.

Adjourn the case

• This means the case will be heard at a later date as the Court may have asked you and the lender to look at alternatives before coming back to Court.

Issue a Suspended Possession Order

• This means you can continue living in the property, provided you continue repaying the mortgage and the mortgage arrears payment in the sum agreed by the Court.
• If you have equity in your property but you don’t feel you can afford to remain living in the property, you could ask the Court to allow you permission to sell the property yourself to repay the mortgage and arrears. This may mean you get a better price for your home than if it were sold as a repossessed property and you could have a lump sum to either make a fresh start or to help with any unsecured debts that may be outstanding. However, please consider the costs that can be incurred when putting a property on the market and factor these in.

Grant a repossession Order

This means you will be evicted and the lender will sell your property to repay the mortgage debt.

• You will be given a date to leave the property, normally 28 days from the date the Order was granted – you can ask for this to be increased to 56 days if there are mitigating circumstances, such as a disabled person in the household and you need more time to find somewhere suitable to live.
• The number of days you will be allowed will be included in a Warrant of Possession.

What is a warrant of possession?

The Possession Warrant allows a County Court Enforcement Officer (Bailiff) the power to evict you from your home. They will send you a Form N54 Notice of Eviction.

It also allows you to apply to the Court to postpone the eviction if you can prove you can afford to pay the mortgage and the mortgage arrears.

When the Enforcement Agent turns up at your property, you will be removed from it, and the locks will be changed.

Can I stop the eviction from happening?

At any time before the eviction date, you can apply to the County Court to suspend the Warrant of Possession by completing Form N244 to request an emergency hearing.

It will normally only be suspended if you can convince the Judge that you can retrieve the situation.

You need to explain what has changed to allow you now to pay not only the mortgage but also the arrears and you will need to evidence this by completing an Income & Expenditure.

Attach the Income & Expenditure to the N244 and submit this to your County Court. There is a fee to do this, which is currently £50.

The Judge will consider your proposal and if he feels there are grounds to stop the eviction from going ahead and set a hearing date that you would need to attend.

If you’re applying for the emergency hearing on the day that you’re due to be evicted, we would recommend that you ask the Court officer to inform the Bailiffs office if the suspension has been granted, to prevent them from evicting you whilst you‘re at Court.

What are enforcement agents allowed to do when they come to evict you?

There are no rules about what time of day they can come to evict you from your property, but it should usually be during normal working hours.

If special arrangements need to be made – for example, if you need help moving out because you have a disability or young children – the enforcement agents should make allowances for this (as long as you let them know in advance of the eviction date).

Enforcement agents are allowed to use reasonable force to enter your home and remove you and anyone else living there. After the eviction, they will probably change the locks and may also arrange to have the gas and electricity supply disconnected.

Your mortgage lender’s solicitor or agent will also attend the eviction – the enforcement agents will give them the new keys to the property.

Enforcement agents can ask the police to attend the eviction to avoid any disturbance.

What if you can’t afford your rent or mortgage?

If you’re struggling to manage your finances, we might be able to help. We offer debt advice on a variety of debt solutions, and can talk you through your options if you’re finding it hard to make ends meet.  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’re 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’ve 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.