What is repossession?

Your lender may ask the court to recover your home if you fail to meet mortgage payments or other secured loans in your home.
Your mortgage lender has a financial participation in your home.

Your lender can apply to the court for a possession order if you have mortgage arrears. They do this in order to sell their house and get back the money they owe.


Recovery must be a last resort.

Guide to mortgages for buying repossessed properties

Key points

Obtaining a mortgage for a recovered property is no more difficult than going through the same process for an average home, but you may have to move quickly
Lenders have a duty to try to get the most money for a property, so there is a greater risk of it falling
Talk to a mortgage counselor for more guidance on buying a repurchase property
Getting a mortgage for a repossessed property
As a general rule, buying and obtaining a mortgage for a recovered property is no more difficult than going through the same process for an average home.

As with any other home, it is wise to visit it several times before making an offer. If you are concerned about a structural problem, it may be worth visiting with a builder or surveyor beforehand.

It is more likely that the recovered properties have fallen into disrepair and have been left vacant for some time.

Your lender will want to make a valuation before lending you the amount of the mortgage, and the value could be less than expected if the property has not been well maintained