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What is repossession?

What is repossession?

If you do not respond to the default notice (within the 30 day notice period), a bank may commence legal action to recover the outstanding debt (arrears).

The process of recovery or possession of a defaulting borrower’s assets generally takes about six months and in many cases much longer.

A bank generally needs to file a Statement of Claim with the Court before they can take possession of your home or other assets.

In NSW, if you have received a Statement of Claim you have 28 days from the date you were served to file a defence. When the 28 days expires the bank can apply to get a Court judgment against you.

You should speak to a legal adviser if you have had a Court judgment against you. Click here for the contact number of legal aid and other legal advisers in your State or Territory.

If you have been served with a default notice or statement of claim you can speak to a professional financial adviser, an independent financial counsellor or legal adviser to get information and advice on what you should do next. Contact numbers for these services are available here.

How does a bank sell a property? Does the bank usually 'just want to get its money back' or does it set a reserve and instruct the agent to obtain the maximum possible price?

This is a really important point: The bank’s duty to the mortgagor (i.e. you) is to act in good faith and to not sacrifice the interests of the mortgagor. So, it’s not simply a case of the mortgagee (i.e. the bank) ‘just wanting to get its money back’. A reserve price can be set on advice from a valuer or real estate agent. The mortgagee’s duty (i.e. bank) is to conduct an appropriate marketing campaign so that in the final result, the best market price on the day, is able to be achieved.