Repossessions in the UK vs Repossessions in the USA

When a house owner fails to pay the mortgage or falls in arrears, the mortgage lender requests a court to issue a repossession order that in most cases precedes an eviction notice. With the eviction process initiated, the house owner loses his or her house with the house made available to other interested buyers.

House repossession in the UK

In the UK, there are two types of house repossessions; the bank repossessed houses and the private property sales.

The slight increase in the number of repossessed houses in UK is attributable to the recent UK economic slowdown that has left many people struggling financially. Most of the repossessed houses are now being auctioned. At the auctions, properties are sold at a minimum price to recover the losses incurred due to the previous owner’s debts.

What to do in case of repossession?

There are steps taken to avoid repossessions. Legal aid is available to help postpone or stop a home from being repossessed. You can get advice from a civil legal adviser if you are eligible.

When faced with difficulties in paying your mortgage, you may also seek talks with your lender to try and renegotiate about the repayments, and it will give you a new plan and a new working payment scheme and save you from the danger of being homeless. Repossession should be the last resort.

The government of UK also offers an emergency housing if you are homeless to assist while you still look for a new place to settle, although these houses are offered only to those citizens who are considered legally homeless.

If you have exhausted all the options available, then you may let your lender repossess your home. If you are not willing to allow repossession, then your lender may take you to court. It is necessary that you attend every legal proceeding if you do not want your house repossessed.

If you are served with a repossession notice, you can look for more information here at

Legal processes involved in a repossession

The lender may start the proceedings for repossession at either the circuit court or the high court.

The circuit court procedures begin when the lender issues you with a civil bill. It is usually accompanied by an affidavit setting out claims against you.

The registrar will decide through the affidavits.

House repossession in the United States of America

The repossession process in the USA is almost similar to that in the U.K. Properties are put up for auctioning by the lender and the money recovered is used to pay the outstanding debts. Banks put up the house for sale in an auction sale.

Statistics show that thousands of houses that are repossessed properties all across the United States of America are sold below market price at the repossession auctions sometimes between 30% and 50% or more.

In the U.S. there are several reasons for repossession, they include, divorce, bankruptcy and credit problems. The gives listings of repossessed housed in the market for sale, in the USA.

However, the House reports show that the level of home repossession in the USA has gone significantly high over the years and are yet to increase.

In case of a repossession, the government of USA offers some steps that you can take to avoid foreclosure;

Step One: Communicate With Your Lender

It is advisable to contact your lender once you realize that you are going to have trouble in making the payments on your mortgage. Explain to the lender what plans you may have to be able to continue making the settlement.

Step Two: Work with the MHA Program

Making Housing Affordable (MHA) is a program that provides you the type of advice and assistance that you may need in keeping your home or moving out safely. There are also state housing agencies that have a foreclosure avoidance program. It helps you plan on to repay your mortgage plan and make the monthly payments more affordable.

Another option may be the mortgage refinancing. It is whereby you satisfy the outstanding debt by creating a new one. In other terms, you take out a new mortgage.

If you have faced a foreclosure, then it is advisable to visit the U.S. Department of Housing and Urban Development’s Office for housing counseling. The department will help you with housing options and assist you to settle and start all over again with your family.

Comparing the United States of America to the United Kingdom, The USA seems to have a better scheme planned situations of house repossession, and it has set aside organizations such as the MHA to help in advising you on how to move on after a foreclosure. However, the rate of house repossession in the USA seems to be higher than that in the UK.

However, in both cases, it is advisable first to take measures that will avoid closure like talking to your lender first to have more time to settle the debts.


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