|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Thursday 04th of March 2010
December 29, 2009    

Government to close repossession loophole

Bookmark and Share

by Gill Montia

Following a period of consultation, the Government has announced plans to tighten up the law so that no mortgage borrower can have their home repossessed without their lender first obtaining a possession order.

The proposed changes address the outcome of the case of Horsham Properties Limited v Clark and Beech, when borrowers in arrears had an action of trespass brought against them and were subsequently evicted.

According to Justice Minister Bridget Prentice: “Under the existing law, lenders have the right to repossess and sell a property without seeking either the agreement of the owner, or of the Courts.”

She adds: “While there is no evidence that owner-occupiers are being treated in this way, the government proposals published today would close this loophole and prevent any future instances of ‘rogue lenders’ behaving this way.”

In related news, official figures show that in the year to the end of September, around 33,000 people were helped by a government-backed scheme aimed at helping borrowers attending court for repossession proceedings.

Seventy-six per cent of those seeking help returned to live in their homes following their court hearings.

Discuss this in the Finance Markets forums

Story link: Government to close repossession loophole

Related financial stories to: Government to close repossession loophole:
Previous: « BCC survey reveals 2010 will be a tough year
Next: Japan Airlines shares hit record low amid bankruptcy rumours »

Visited 597 times, 2 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Tags: court order, evicted, Justice Minister, loophole, , trespass