What Happens in Repossession?

kimlyn_2 · 5 October 2006 at 11:32AM

The buyer of our flat has now pulled out for good,so repossession is the only answer,but what happens next??
Our mortgage on the property with Abbey is about £33,200 and our second charge with CitiFinancial is about £66,300.Our flat was up for sale for £102,500,that just leaves £3000.Now I know that it won't be sold for that price by Abbey,so what happens with any shortfall??

soolin · 5 October 2006 at 11:56AM

AFAIK when someone at work had something similar the debt (ie amount between paying back loans and actual proceeds from the house) remained with her and she ended up having to work out a repayment plan. Also she was absolutely gutted as her house had been valued at approx £140,000 but her building society let it stand empty for several months in the winter and by the time it went out to sale it only sold for £87,000 as it had started to look a bit tatty and neglected.

This was a while ago though so maybe things have changed for the better. She did recover from it, and is now working happily and being as thrifty as she can be so she can save up again for a deposit on a smaller property.

Soo

Verbatim · 5 October 2006 at 1:10PM

Can you put it back on the market at a lower price in the hope of a quick sale?

chloe99_2 · 5 October 2006 at 1:41PM

can't csb help you negotiate with lender to give you more time to sell - maybe if they sell it they won't get all their money back, at least for a long time, but if they allow you to sell it they could have it all - won't they be persuaded?

kimlyn_2 · 5 October 2006 at 1:41PM

The trouble is we are already 2 months behind on both mortgage payments and CitiFinancial have said that if we don't make a monthly payment by the end of October,they will stop any sale going through.We really can't afford to pay them.I don't think any sale can go through that quick.

soolin · 5 October 2006 at 1:49PM

Sorry I'm still speaking here from a position of not really knowing what I am talking about...but, 2 months behind is not major. It might seem a lot but have you gone through the CAB and other Debt type places to see what bargaining power you have? I'm sure they are acting a bit quick in refusing to allow a sale so quickly, my work colleague said she was 6 months behind when they repossesed her which was bad enough.

Soo

rog2 · 5 October 2006 at 1:53PM

I think I would agree with soolin - the building society will be happier, in the long run, if you can sell your flat at a more realistic price.
Try having a look at the Mortgage board as well.
Good Luck.

Dr.Shoe_2 · 5 October 2006 at 10:53PM

The problem is is that the lender don't really give a toss if it goes for less than market because they (try to) come after you for the shortfall anyway.

fatbelly · 5 October 2006 at 11:38PM

Suggest you check with your solicitor whether they can actually bolock the sale, continue to market the property (more than one estate agent?) and pay what you can afford to the mortgages. In possession proceedings, there are four stages before you get to court, and two after:

stage one: a standard letter, sent by the lender, when the client has missed one or two payments. This will ask the client to make good any missed payments or to contact the lender to discuss the payment difficulties

stage two: a seven day letter, sent by the lender, when no satisfactory arrangement has been made and the client is in arrears of at least two months. This will require the client to clear the arrears or to contact the lender within seven days, otherwise the lender's solicitors will become involved

stage three: a seven day letter sent by the lender's solicitor requesting that the arrears be cleared in full or proposals for resolving the problem be made within seven days, otherwise possession proceedings will be started without any further notice

stage four: issue of a claim for possession of property, sent by the county court, approximately four to six weeks after the solicitor's letter in stage three, giving details about when the court hearing will take place and full details about the case. The lender also has to send a notice, addressed to 'the occupiers', to the property at least 14 days before stage five, stating that possession proceedings have started

stage five: the possession hearing, at which a district judge considers the claim and any proposals the client has to deal with the arrears

stage six: the judgment, when the judge will decide whether to adjourn the case, dismiss the case, make a suspended possession order, make a time order, or make an order for outright possession (with or without a money judgment)

stage seven: application for a warrant, which is made by the lender's solicitor where the judge has made an outright possession order or the client has not kept to the terms of a suspended possession order. The client does not have to be informed that the lender is applying for a warrant. Once obtained, the warrant is passed to the court bailiffs to carry out

stage eight: eviction, which is carried out by the bailiffs, who inform the borrower of the date and time of the eviction in advance. The bailiffs visit the property to make sure it is vacated and the locks are then changed

kimlyn_2 · 6 October 2006 at 8:53AM

Thanks everyone for your help.
Can bailiffs take my possessions to cover the shortfall or would there be a payment arrangement set up?

What Happens in Repossession?

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