Final negotiations during repossession actions

Assuming that the lender has obtained the right to sell the property and has now raised the action for ejection, and that the borrower cannot apply for or has been refused a section 2 order, the borrower can still take steps to negotiate with the lender.

This will be particularly relevant if the borrower is not entitled to apply for a section 2 order and has been able to raise a lump sum to clear part of the arrears and is able to make an offer of repayment of the balance of the arrears over two to three years, in addition to the normal future repayments due.

Borrowers should produce a detailed financial statement, showing their essential expenditure on items such as food, fuel, travel, childcare, and so on, and their net disposable income.

At this stage, full disclosure is absolutely essential as lenders will require considerable persuasion to agree to an arrangement.

If the lender is prepared to consider the above, the court action can be 'sisted' (suspended), to allow monitoring of repayments.

In the event of the borrower defaulting on this arrangement, the lender can lodge a motion in court to 'recall the sist', to bring it back to court. This will be virtually impossible to oppose and the lender will then obtain decree of ejection.

This content applies to Scotland

Last updated: 29 December 2014