House Reposession - lots of questions

[Beanmistriss]

Would someone be able to explain the process that has to be gone through in law before a house is repossessed please. Does it have to go to court before a warrant for reposession is issued and a date give? If so how is the person informed of the court date and are they informed straight away of the outcome if they don't attend court? Would it be possible for the warrant to be issued and someone with a charge on the property to be informed before the person owning the house knows anything about it? Do they have to be all packed up and ready to hand over the keys at the time and date stated on the warrant?

Also when a house has been repossessed it it the case that the mortgage company takes it's money, people with a charge on the property get theirs then the owner gets anything left? Would the person be rehoused by the council if the have a substantial amount left from the property or would they have to spend this first on private rental (there are two dependent children)? Would they be able to claim benefits or would they have to spend the money first?

Thanks people, a lot of questions I know. But we have a crazy ex who hasn't been paying her mortgage and we belive is telling a lot of lies and two semi grown up children we have to explain the process to. Thankyou

[bednobs]

while i cant answer your question i can give you some advice. If you believe there will be equity in the property after any charges and paying the mortgage, then seriously consider selling it yourself. Even if you have to reduce the price, you will get more as a private sale than a reposession
thats probably not all that helpful if it's crazy ex who is doing the selling though

[bednobs]

if you don't get any answers you could try the shelter website section on reposession http://england.shelter.org.uk/get_advice/advic e_topics/repossession

[Beanmistriss]

Thanks bednobs. It is indeed the crazy ex whos house is being repossessed. That site's very useful.

[Eve]

Is it your partner's ex? Do they have a financial interest in the property. I would assume you're worried about children should the property be repossessed.

It can be quite a lengthy process, dependant on the severity of arrears and circumstances, the first few court hearings will usually give a chance to keep to a repayment plan.

In order to actually evict someone to repossess and sell the property the lender would need to get a possession order at court. This is a matter of fact hearing and a date and time would be set for the bailiffs to come round and do the official eviction.

Flexibility depends on the lender and, when the account is in litigation (referred to solicitors for repossession proceedings) the solicitors acting.

I've managed to stave off some repossessions in order to allow extra time for a private sale (highly recommended as the seller may get some equity back depending on what is owed). It's not easy though and the lender/solicitors would need proof of the sale and ability to pay them off in full.

Be careful selling for a much reduced price unless it covers owing as a lender would be loathe to accept a settlement of a lower figure when they could sell it themselves and get more money back.

Difficulty comes in here is there is more than one charge or other charging orders - if there are any CCJ's or similar there may be a restriction on the property which means that the amount owing needs to be paid before sale.

The title can be downloaded from the Land Registry here for �3.00...

http://www.landregisteronline.gov.uk/

It should show all charges secured on the property.

[Eve]

If selling privately it needs to be checked very carefully how much is owed (often far more than people think once arrears charges, early repayment fees and legal fees are added on).

Any sale price would need to cover all of these so there is no negative equity (more money owing than would be got for the property).

When a lender repossesses and sells they sell under a power of sale which overrides other charges so it is not an issue for them. Often there is no money left to go back to anyone once everything that can be paid off has been.

It might be worth checking out the local social housing criteria.

[Beanmistriss]

Hi Jenna. It is my partners ex and he has a charge on the property which he was supposed to recieve when his youngest turned 18 (next year). He recieved a letter from her mortgage provider to note his interest with a date and time for their eviction. He rung up his daughter to see what was going on (the ex will not talk to him under any circumstances, well unless she wants money) and she didnt know what he was talking about. His son has been living with us for 3 years and has moved back there yesterday. He hadnt been told either. She told them on saturday morning after she found out her daughter knew but claimed she had known nothing about it, never been sent a letter, had a phone call and there had not been a court meeting and had only missed half of one payment. We thought that was crap but needed to let the kids know what would actually happen. Could they stop it etc. Anyway my bloke went round there yesterday with some stuff off the shelter website and said to his daughter this is what should happen, if it hasn't your mum has a good case and she's now admitted she did know but just didn't tell them. So I think its gone too far to do anything, the reposession date is in three weeks. She's due a baby in 21/2 weeks, has my blokes son whos still dependent (his daughter isn't) and some other kid who she apparently has taken over gardianship for. They're just going "oh well, we'll get a council house". Sorry, that was more of a rant than any kind of reply, but I'm really mad she would let him come back to live with her knowing that in three weeks he's going to be homless. All a cunning plan to get a bigger council house methinks.

[themas]

She may well be disappointed about the Council house. The Council only has a duty to house them if (among other things) they are not intentionally homeless. They will or should look carefully into the circumstances that led to the repossession, & if they conclude that she has been irresponsible with her money they may well conclude that the reason for the repossession is her spending of money on other items which should have been a lower priority. If so, they may consider she is intentionally homeless & refuse to rehouse.

[Beanmistriss]

Things like car insurance, fake nails, fags and weed? Then she may be unlucky. We were a bit worried about that. Not that fussed about her but not great for the kids. Thanks themas.