A Suspended Repossession Order

If you attend the repossession hearing you are most likely to receive a suspended repossession order. This will likely state that you have to make an overpayment of a certain amount until the mortgage arrears are cleared in full. It is important to be aware that you have to stick to this agreement to the penny and to the day. If you do not the lender has the immediate right to request the Court issue an eviction warrant without the need for a hearing.

If you have a suspended repossession order and think you may be a day or two late keeping to the agreement but are able to pay, it is important that you contact your lender and advise them that you will be a little late or a little short on the overpayment. Most High Street lenders will accept this but some sub-prime lenders will be completely un-cooperative and will ask the Court to issue the Eviction Warrant.

From our experience there are two types of repossession orders, most state that the order is cancelled when all of the arrears have been cleared so if you fall into arrears with your mortgage again the lender has to go through all of the legal proceedings again to cause a repossession. We have recently seen repossession orders where if the arrears are cleared in full the original repossession order is enforceable allowing the lender to issue an eviction warrant without the need for a further Court hearing.

If there are a large amount of mortgage arrears still outstanding taking many years to clear it may be an idea at some point to get some finance to clear the mortgage arrears or to refinance to a new lender completely. As an example the arrears may be so large that it could take many years to clear the arrears and cancel the suspended repossession order. However once you have shown signs that you are making consistent mortgage payments you could get a secured loan and clear the arrears in full or once you have made 12 consecutive mortgage payments most lenders will ignore the mortgage payment history and it may even be possible to get a competitive mortgage with a High Street lender.

When deciding on the best option it is important to bear in mind if you have an early repayment charge with your current lender and when that will end. If it is in say 12 months time and you have say £5,000 or arrears, it may be best to get a secured loan to pay off the arrears and remove the suspended repossession order and then remortgage in 12 months time after your tie in period so that you do not have to pay the early repayment charge. This can be as high as 7% with some sub prime lenders.

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