Repossession Loophole to Close
by David Carter on 05 January 2010
The Ministry of Justice is proposing a change to the law to ensure that mortgage lenders will not be allowed to repossess homes without a court order or the borrower’s consent.
Although this is the current practice of the majority of mortgage lenders, making this law will give home owners access to court protection when threatened by repossession. Under the existing law lenders have the right to repossess and sell a property without seeking agreement of the borrower or the courts.
There will be a consultation period which runs till 28th March – you can see the proposals and more detail on the Ministry of Justice website.
In my opinion, this is good news as it will stop those few rogue lenders from repossessing unduly quickly and without giving the home owner any court protection.
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