Court protocol strengthens repossession rights
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Homeowners threatened with repossession are to receive stronger legal protection.
New rules announced by the government will force lenders to prove they have done everything possible to avoid repossession if a case comes to court.
Top judge the master of the rolls has approved a court protocol for repossession cases drawn up by the Civil Justice Council. Under this lenders will have to demonstrate they have discussed alternatives to repossession with a homeowner before proceeding with the action.
Justice minister Bridget Prentice added: ‘Lenders will be expected to consider ways of resolving problems outside the court system so that mortgage possession claims are only brought to court after all other suitable options have been exhausted.’
The government has also promised to consult on the regulation of companies that buy homes from struggling owners and then rent them back to them. This was a key recommendation of a government-commissioned Office of Fair Trading report published last week.
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Mark Jones | 08/03/2010 8:24 pm
I am going through repossession my local Council and Shelter have been trying to get me the Mortgage Rescue Scheme but we have been told that it is a no as they will only cover the mortgage and nothing for the Secure loan my house is valued at £275,000 my mortgage and loan come to £215,000. We will be classed as homeless.
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