Mortgage Arrears

If you have mortgage arrears it is important to resolve the problem as quickly as possible. Firstly consider how you are going to clear the mortgage arrears in addition to maintaining your normal monthly repayments to your lender. Draw up an income and expenditure form that covers all of your monthly outgoings. Its important to put down realistic figures most lenders will expect you to repay the mortgage arrears within three years at the latest.

If you are in mortgage arrears and are not able to make an arrangement to clear them, your lender may seek a possession order through the Courts in order to evict you and sell the property. The Court will send you a Summons for Possession, notifying you of the date of the hearing and the details of your lender's claim. You will also be sent a Form of Reply, where you can write down any facts that you want the Court to take into consideration.

If the case goes to Court it is important that you or someone representing you attends the hearing, or you send in a written report detailing your circumstances and any offer of payment that you are able to make. If the Court Registrar is satisfied that you can clear the arrears in reasonable time, and manage the home loan in the future, he may make a suspended possession order and an eviction will not take place as long as you keep to the agreed terms.

If the Court Registrar is not satisfied, he may grant the lender an order of possession for your property. This usually takes effect 28 days from the day of the Court judgment, but can vary from 7 to 56 days in some cases. You do not have to vacate your home immediately this period of time ends. Your lender first has to obtain a warrant for possession from the Court and this may take a little time depending upon how busy the Courts are. A Warrant for Possession is enforced by the Court Bailiffs, who will visit or write to you first to inform you when the eviction will take place.

Mortgage Arrears :