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In the United Kingdom, including Edinburgh, the term used is 'repossession' rather than 'foreclosure'. Repossession is the legal process that allows a mortgage lender to take ownership of a property when the borrower fails to meet mortgage payments. The process follows judicial proceedings and includes specific notice periods. It is last resort action, with lenders preferring to work with borrowers to find a solution when they are struggling with repayments.
You might need a lawyer if you are facing difficulties in paying your mortgage and your lender is considering repossession. A legal representative can guide you through the process, help with negotiations and ensure your rights are protected. You may also need a lawyer if proceedings have started; they can give indispensable advice, potentially contest the repossession on legal grounds or help you buy time to find an alternative solution.
Repossession proceedings in Edinburgh and the broader UK follow strict rules. The lender must send a notice of default, detailing the nature of the default and how to remedy it. If repossession proceedings begin, the lender must provide a Standard Financial Statement to assess affordability for repayments. They must also give 'calling up' notice to the borrower, providing two months to pay the arrears before applying to the court. If the court issues a repossession order, you typically have a month to leave the property unless the order is challenged or appealed.
Yes, repossession can often be avoided by arranging a new repayment plan with your lender, changing the type of mortgage, or selling the property and repaying what you owe.
It can take several months from missed payments to repossession. The exact timeline depends on the circumstances and legal proceedings.
You have the right to be informed at every stage, to be provided with a statement of means, to receive a calling up notice and to be represented in court. The court also has to consider all circumstances before giving a repossession order.
If the property is sold for more than you owe, you will receive the surplus. If it does not cover your debt, you will still owe the balance.
In some cases, you may be able to get your home back if you can repay your debt in full or reach another agreement with the lender.
For additional support, you can contact government-backed organizations such as the Money Advice Service and Citizens Advice Bureau. These organizations can provide free guidance and direct you to further resources.
If you are facing repossession, it may be time to consult a lawyer. They can provide professional advice and guidance. Be transparent about your situation and see what options you have. Being proactive can save stress and potentially your home.
