The possession of your property will be sought only as a last resort when all your attempts to reach alternative arrangements with your lender have been unsuccessful. A lender may obtain possession in three ways:

• By court order When going through the courts, your lender must adhere to all the legal requirements and procedures to enforce their security, a number of which give considerable protection to you, the borrower. Proceedings may be suspended should the court consider that you are able, within a reasonable time period, to pay any sums due under the mortgage. The execution of the possession order may be postponed for a time to allow you to secure somewhere else to live.
• By voluntary agreement with your lender If you have little prospect of repaying your arrears you may be able to reach an agreement with your lender to hand over your property without the need to obtain a court order. You may also be asked to sign a voluntary possession declaration to confirm the agreement, which would make it clear that mortgage interest together with other charges will continue to accrue until the property is sold. A voluntary surrender may result in an earlier sale of the property than would be the case with court proceedings.
• Surrender (or abandonment) without notifying the lender If you have failed to discuss your mortgage arrears problems with your lender, or have struggled to agree on a suitable arrangement, you may simply vacate the property without advising the lender; often keys are sent to the lender, this being possibly the first intimation that the property has been surrendered. In such circumstances, the property would be sold by the lender. You, as the borrower, would be liable for the total debt including mortgage interest which accrues until the property is sold.

Irrespective of how your property is taken into possession, you will remain liable for the outstanding debt including any accrued interest and charges between the date of possession and the date of sale..