Mortgage Update - October 2009
22-Oct-2009 | Banking & Finance, Financial Institutions & Services
Arrears and Possessions - Residential Mortgages
Lawyers Peter Shepherd
In this bulletin we discuss the following issues:
- What steps are typically taken when a borrower is in arrears but before possession proceedings are commenced?
- Does the attitude of county court judges to granting Possession Orders throughout the country vary significantly? Are the courts implementing a "reasonableness" test?
- When is a debt counsellor appointed and is this mandatory?
- Do the courts expect all residential mortgage lenders to abide by the Pre-Action Protocol?
- What priority are the courts giving to these cases at the moment?
- How sympathetic are the courts to adjourn a case if the borrower offers to make reduced payments? How small can these be?
- Is there any evidence of the courts requiring compliance with the Protocol on buy to let residential mortgages?
- What records must a lender keep and how much information must be provided to the borrower?
- How is the recovery of any outstanding debt achieved following the sale of the property?
- Arrears and Possessions Timeline
