Repossession is the process by which a lender reclaims a property that has been used as security for a loan or mortgage. Repossession may be initiated if the borrower defaults on the loan or mortgage, which can occur if the borrower fails to make the required payments, violates the terms of the loan agreement, or abandons the property.
In the United Kingdom, repossession is typically carried out by court order, and may be initiated by the lender if the borrower falls behind on mortgage payments or fails to meet other terms of the mortgage agreement. The lender must follow certain legal procedures in order to repossess the property, including serving the borrower with a notice of repossession and obtaining a court order authorising the repossession.
Repossession can be a stressful and difficult experience for borrowers, as it can result in the loss of their home and damage to their credit score.
Lenders have no interest in keeping these properties, so they need to be sold asap, often via property auctions. When buying a repossessed house you need to find out the timeframe required until completion and what the property is made from, as either of these will affect your mortgage options.
