If your house is being repossessed it can take a long time, as there is a lengthy process to follow before your house can be repossessed. This article answers the question: Will my house be repossessed?
You may also want to read our article on how to stop repossession for more information.
How will I know if my house will be repossessed?
Before your house can be repossessed, your lender must follow some rules on how to deal with your debts. Below are the steps your lender should take before your house can be repossessed:
- They should first contact you and together you should come up with an arrangement for you to pay them.
- Then the lender should write to you. This time warning you with court action to repossess your home if you do not respond to them.
- At both stages, you can negotiate with your lender the best way to make payments.
After this process, the lender can get a court order to repossess your home by making an application to the local county court. Please note, the lender must have clear reasons why the judge should give them possession of your home. You can find more information on the house repossession process in our article, how to stop repossession of my house.
My partner is in debt, will my house be repossessed?
In the case, your partner secured any loans or debt against the house then the creditors could apply for an order for sale. If this is not the case then they might be open to negotiation and your partner could pay a monthly amount towards the debt. On the other hand, if this agreement cannot be made, or is broken, then the creditors could apply at that stage to have the debt secured against the house. This could result in your house being repossessed.
If an order for sale is applied for payment will be made in the following order:
- Mortgage repaid
- Secured loans and charging orders repaid
- Any equity divided between joint owners
Will I lose my jointly owned house?
If the debts are not secured against your home or if the other person is personally liable for their debts, then your house should be safe. However, if the other person defaults on the debt and then is made bankrupt, their slice of the house is also up for grabs to pay off the creditors.
The good news is that there are options available to help you with the debt, such as a debt management plan and there is still a long road to go down before bankruptcy or even having to fend off creditors after the house. You can consider an Insolvency Voluntary Arrangement or IVA which is a formal agreement between the other person and their creditors and which will result in a write-off of much of the debt as well as setting a realistic repayment plan which will last for a restricted period of time. As long as they stick to those payments then you will be free and clear.
How much time do I have before my house is repossessed?
How long you have before your house is repossessed, depends on your ability to stop repossession. The results and actions you take at the court hearing will determine how much time you have. Here are some factors that can affect the length of time before your house is repossessed:
- How busy the court is: If they have a deal with many similar repossession cases, this will slow them down considerably.
- If your lender has done something illegally: If so, provide proof to the court and your case will be delayed.
- The equity in your home: If your home’s equity is more than your debt, then you can sell it and keep the profit to yourself.
- The financial state of your lender: Your lender could lose more money by rushing through the repossession process in court. They rather find a way for you to pay them the money.
For more information on what happens after your house is repossessed, please read this article: House repossession: What happens after?