Does an outright possession order mean you have run out of time?

An outright possession order in its simplest form, is a legal directive that grants your lender the right to take possession of your property due to failure to meet mortgage payments.

This order is the end result of a legal process initiated by the lender when you have significantly defaulted on paying your mortgage. Unlike suspended possession orders, which give you a chance to rectify your arrears under specific conditions, an outright order doesn’t allow for any leniency. Once issued, it means the lender can repossess your property without further notice after a specified date.

The process begins when you start falling behind on mortgage payments. Lenders typically initiate contact, offering opportunities to address the arrears. However, if these efforts fail, the lender may proceed to file for a possession claim. A court hearing is then scheduled, during which both the lender and borrower present their cases.

It’s during this hearing that the significance of your circumstances comes into sharp focus. If the court concludes that you cannot feasibly rectify the situation, it may issue an outright possession order. The decision is heavily influenced by your ability to make future payments and settle past dues within a reasonable timeframe.

Once issued, an outright possession order marks a critical point of no return for you as a homeowner. Once in effect, you will be required to vacate the property by the date specified in the order, usually within 28 days. Failure to leave can lead to eviction by court bailiffs. This not only results in the loss of your home but also has long-term consequences on your credit rating, making it really difficult to secure future housing or loans.

BUT, there are steps you can take to avoid this kind of situation.

• Legal Advice: Seeking immediate legal counsel is key, as legal experts can offer guidance, including potential grounds for appeal or negotiating with your lender for an alternative resolution.
• Communication with your Lender: Opening lines of communication with your lender may provide options such as a revised repayment plan, especially if there’s a change in your financial circumstances.
• Exploring Housing Options: It would be really sensible to explore alternative housing options early, considering the potential need to vacate your home.

Getting to grips with the implications of such orders is really important, as it will help you understand what your options are and with help, you can follow through with one or more to help you get back on track to having a stress free life.