The County Court is not a criminal court.  The hearing is not like a trial by jury you might see on the television.  It is just you, the District Judge and a representative of your lender’s solicitor.

If you are more than two months behind with your mortgage or secured loan, the lender has a legal right to seek possession of the property.  They cannot repossess without a court order, a Warrant of Eviciton, which is issued at the END of the process, not the beginning. 

So a letter form your lender with a Claim Number for a County Court hearing is a wake-up call for you.  It is not a death warrant.  It is not a foregone conclusion that they will repossess the house.  They do not want to repossess the house.  What they want is MONEY.

County Court hearings for possession are all about arrears.  You owe them money.  You don't call, you don't write.  How is your lender supposed to know what is going on?  How would you feel if you lent someone £500 and they never got in touch with you.  You'd be pretty angry.  You might even want to go over and give them a piece of your mind.

Well, the lender cannot do that.  They have to follow a procedure.  Lucky for you, that means you have an opportunity to DO SOMETHING POSITIVE about your arrears.  Fight for your house.  Don’t just let them take it.

The first hearing for possession
Dress as for a funeral.  Suit, tie, sober colours.  No jeans – this is SERIOUS.

You go in and register with the court usher.  

Your case will be on the list as Your Lender Versus You, eg  Halifax Bank versus Mr and Mrs Jones.

There may be a Welfare Rights Officer or a Citizens Advice Court Liaison Officer.  Ask to speak to them.  They will take you into a small private office to discuss your case and will accompany you in the hearing if you wish.

The representative from the lender may well pounce on you and ask to talk to you privately.   You do not have to speak to them, but they will know soon enough what you are going to propose, so why not talk to them?

When your case is called, you proceed to the Hearing Room.

The District Judge starts by asking the lender’s side for certain paperwork.  This has to be in order, otherwise the case will be adjourned.  Please note that this is very rarely the case.

The judge may ascertain further figures from the lender’s side.  Then he may turn to you.  This is your opportunity to put forward your proposal.  Do not dwell too much on why you are in this mess.  You may get the sympathy vote but you are still going to get a suspended Possession  Order.

The Suspended Possession Order

The judge usually grants a Possession Order to the lender because the law is on the lender’s side.  The judge has DISCRETION in the terms of the order.  It is usually suspended  based on an arrangement to pay or based on the property being sold to redeem the arrears and the mortgage in full.   Sometimes the arrears have to be paid in full in 28 days. 

(a)   An agreement  to pay back the arrears is based on paying the current monthly instalment (CMI) PLUS an amount towards the arrears.  The lender would like the arrears to be paid off in 6 – 24 months.   So , if you owe £2400 in arrears, you would pay:

your normal monthly payment  PLUS  £400  which would clear the arrears in 6 months   OR

your normal monthly payment  PLUS  £200  which would clear the arrears in 12 months OR

your normal monthly payment PLUS    £133 which would clear the arrears in 18 months OR

your normal monthly payment PLUS    £100 which would clear the arrears in 24 months

(b)   It is sometimes possible to spread the repayment of the arrears over a longer period and in some cases over the remaining term of the loan.  Remember the judge has discretion – the lender has a right to the money.

(c)    If you can pay off the arrears in 28 days , the Possession Order will be lifted

(d)   If you can sell the house in 28 days, the Possession Order will be lifted.  If you need  a little more time to complete the sale, this is usually granted but the lender wants a date for exchange.

 So the best thing to do is PAY YOUR ARREARS as quickly as possible. 

But supposing you default on a suspended Possession Order.  Supposing you r lender does not get the money one month?  What do you think they will do?  Give you a ring to remind you?  Write to you, perhaps?

The Warrant for Eviction

Your lender will simply apply to the court for a Warrant for Eviction    You will get a letter informing you of the date that the Court Bailiff will come and change the locks.  Still got your head in the sand?  What can you do?

You are being evicted because of arrears.  You were given an opportunity to pay under the terms of the suspended Possession Order.  You missed a payment, so the order is no longer suspended but enforced.

So FIND SOME MONEY FAST or lose your house.  And when you’ve found it, go down to the court and pay £40 for a hearing to stay the Warrant for Eviction.  You need the court, the lender and the lender’s solicitor to know that you have made sufficient payment to pull it away from court or restore the terms of the Possession Order.

The Eviction Date

The Court bailiff will come, accompanied by a locksmith and a water board official.  You will be told to leave, the water will be turned off and the locks will be changed.  You may have a front door key but you have no house.  If you have left stuff in the house, the bailiff will arrange a set time when it can be collected.  The property will be marketed by a local estate agent or auctioned.

The Mortgage Shortfall

You are responsible for the mortgage payments right up until the day the house is sold.  If the house is sold for less that you now owe, your lender will come after you for a mortgage shortfall.  They can pursue this payment for 12 years.  So, even though you are now homeless, you still owe them money.

The Aftermath of Eviction

You have no home.  The council are duty bound to house you for 28 days.  Then you are on your own.  You have been in arrears, so a landlord will want 6 months rent in advance or a guarantor for his rent.

You have felt guilty, ashamed and helpless for months.  Multiply that feeling by 100 to get to how you will feel after being repossessed.  Your children may suffer bullying and despair.  Your pets will have to be rehomed. 

SO PLEASE DO WHATEVER IT TAKES TO KEEP YOUR HOME

Even if you have to forego ownership of your property, try to keep your home.

If you can keep your home in your own name by paying down your arrears, wonderful.

If not, please call Mortgage Rescue Scheme on 0845 003 5620 and leave your name and phone number.

Or email   support@mortgagerescuescheme.co.uk

We can guide you as to how best to prepare for the court hearing.