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Form N224
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If you have been to court and failed to prevent your home form being repossessed (see repossession process) there are still some preventative measures you can take. Knowing how to stop repossession is something everyone should know and this page will tell you exactly how to keep your home when the bank has imposed a repossession order. More...
If you took out insurance with your mortgage – and chances are you did – you could consider using it now if you are unable to pay your mortgage due to redundancy or poor health. Most PPI policies don’t take effect until after 3 months, but it could keep you afloat during these stormy times if your lender is prepared to wait.
If you neither have a PPI or are unable to use it, then you should seek an emergency hearing to try and stop your house being repossessed.
NB: Did you know thousands of PPI policies have been mis-sold to consumers? If you have a PPI you may be eligible for a refund. Click here for more information.
Of vital importance is the N224 form – see top of page to download. Even if you are due for eviction the following week, an N224 will give you an emergency hearing in front of a judge. An emergency hearing to prevent repossession will cost around £35 depending on your country court. A last gasp appeal to a judge can get eviction turned down or possibly squashed.
If you are able to repay the arrears in full a month after your eviction date, you can appeal to the judge for extra time. For this you will need to complete a N224 form for an appointment to plead your case with a judge. If you are able to substantiate your promise of payment, the judge may award you a discretionary time period to pay your lender.
A judge will want to help you keep your home. People who have their homes repossessed often become a burden on the state – the judge will seek to prevent this from happening. The legal system and the rights of the lender, however, bind the judge; therefore any attempt to prevent your home being repossessed must be supported by sufficient proof of your ability to pay mortgage arrears.
How to contest an eviction order is straightforward. Contesting a repossession or eviction order is done using a N224 form. The form will allow you to explain why you believe the order is unfair – give clear reasons for your objections. You must be prepared to take evidence to court showing you can clear mortgage debts.
If the judge is convinced by your appeal, a repossession/eviction order can be reversed. Usually, however, this only happens within 7 days of the repossession notice. Paying the arrears in full, however, will stop repossession dead in its tracks. Clearing mortgage arrears will automatically prevent repossession at any stage of the process.
A quick sale can stop your home being repossessed. You can sell your property to avoid being repossessed at any point prior to eviction. If you cannot sell your house quickly enough through the usual channels, ie an estate agent, there are companies who specialise in quick sales. Companies offering to buy your home to help you avoid repossession profit from people in desperate situations – you may be offered as much as 30% under the value of your home.
There are companies who will buy your property and rent it back to you. Sadly, it is unlikely your home would be bought for anything above 65%-80% of its value. Selling your home to a private company for this purpose can come with a range of risks, which vary depending on the buyer. For example, as tenant, you are in danger of being evicted from your home if you make a late rental payment. Seek repossession advice here.
A government funded Part Buy-Part Rent scheme, enables people to own a portion of the mortgage and rent the remainder from a housing association.
This is ideally suited to people who cannot afford the entire mortgage initially but would like the option of doing so when circumstances allow. Alternatively, it can help people who are in danger of having their home repossessed.
The part buy-part rent initiative was originally established to assist key workers in finding an affordable home within short commuting distance. The success of the scheme, however, has seen its outreach widen to include other people without housing needs.
The part buy-part rent scheme usually starts on a 50-50 basis, but it is possible to own your property by means of ‘stair casing.’ Stair casing allows you to take gradual possession of the property as and when you can afford it – increasing your mortgage but reducing the rent.
Applications for the part buy-part rent scheme can be made online or at your local council office. Applicants are rated on a point system depending on individual circumstances. The scheme favours people most in need, including those facing home repossession so the sooner you apply the better.
You will also need to meet the following criteria:
