How long do I have before my home gets repossessed?

A question that always pops up when talking to people that come through our website is “What is the timeline for home repossession?”

The answer can vary based on the circumstances and how lenders handle the process. However, there is a general outline of how it typically unfolds.

When a homeowner misses one or more mortgage payments, the lender will usually contact them to discuss the missed payments and explore options. At this stage, the lender may send reminders or letters, urging the homeowner to catch up or seek help. Many lenders are willing to negotiate repayment plans or allow for temporary adjustments to avoid escalation. This is usually within 1-3 months from the first payment being missed.

If arrears continue for three months or more, the lender may issue a formal demand for payment. At this point, they might propose a solution such as a repayment arrangement. This is a critical time for the homeowner to communicate with the lender and seek advice, as it may still be possible to come to an agreement to prevent further action. This is generally within 3-6 months from the first demand being sent.

If no agreement can be reached or the arrears continue to grow, the lender can apply to the court for a possession order. Before doing so, the lender must follow a strict legal process, including providing proper notice to the borrower. This process could take between 6-12 months, and the court may schedule a hearing to determine the next steps.

At the 9-12 month stage, comes the court hearing, where the judge will consider both sides’ cases. If the lender wins, the judge might issue a possession order, but this doesn’t mean the homeowner has to leave immediately. The judge may give the borrower additional time to repay or improve their situation, or they could suspend the order if the borrower shows they can get back on track.

At the 12-18 month stage, the court grants a possession order and if the borrower cannot meet the terms, the lender can apply for a warrant for eviction. At this stage, the borrower will be given notice, and bailiffs may be scheduled to carry out the repossession. By this point, the homeowner has usually exhausted all options, though some still try to sell the property quickly to avoid forced repossession.

Throughout this process, lenders are encouraged to act fairly and give borrowers a chance to resolve the situation. It’s always best for homeowners in arrears to communicate early with their lender, seek legal or financial advice and explore alternatives like mortgage restructuring or selling the property before repossession is finalised.