Repossession Legals

If you’re facing repossession, then it’s essential to understand some of the legal terms that will be used. You wouldn’t want to lose your home because of a misunderstanding, so have a look at the following legal terms which are part of the repossession process.

Repossession Court Proceedings

They say that everyone will have their day in court. When you’re facing repossession proceedings, your day in court is known as the ‘calling date’ – the date on which the repossession case will first be heard in court. Before you get to that stage, you may receive a ‘calling up notice’. This is what the mortgage lender uses to terminate your mortgage agreement if you have not kept up with the payments. This is your warning that the lender is beginning proceedings with a view to repossessing your home. In legal documents, the lender is the pursuer and you are the defender. You will get a default notice if the amount owed is less than £25,000. Don’t confuse this with a notice of default, which is how the lender lets you know that you have missed mortgage payments, and the lender intends to start proceedings. You will get an initial writ to let you know that the lender has applied for this to happen. There will also be a statement of claim, which sets out why the lender is pursuing the case.

Repossession Decree Of Ejection

If your case is not decided on the day of the hearing, then you get a continuation, which sets another date for you to appear in court. This may be your chance to make a payment or to take the appropriate advice on dealing with your debt. When you go to court for the initial hearing (known as the first calling), you will have a proof hearing, where the evidence is heard. Once a decision has been made on the repossession hearing, then this is known as a decree. A decree of ejection or ejection order will mean that you are no longer entitled to live in the property, and must therefore leave. Alternatively, the outcome of the case can be a dismissal, which means there is no case to hear. This might also happen if you reach an agreement with the lender.

Repossession Extract Decree

If a decree of eviction is entered and you do not appeal, then in 14 days an extract decree will be issued, which means you can be removed from the property. An extract decree also applies to payment arrangements, setting the date for the first payment. A section 2 order can stop or delay repossession under certain circumstances.