Today at Prime Ministers question time in the House of Commons, an MP raised the cases of constituents of his who have had small debts purchased by debt purchase companies, who then seek to get judgements in default of settling these accounts. They then seek to secure these judgements on property, which they they seek possession orders on. This goes against the political pronouncements which have made it quite clear that everything must be done to avoid houses being re-possessed.

Those housing repossessions of course relate to residential mortgages, which will be subject to new guidance, which will require a lender to explore every possibility, including re-terming the mortgage, changing the mortgage type or giving some holiday payments. If arrears can be paid over the term of teh mortgage then this should be considered also. Judges will be expected to take all this into account before agreeing to make a re-possesion order.

These same rules do not apply to charging orders, which were referred to above, and so the Prime Minister indicated that this will be looked at and cahnges may be expected. Quite when this could take place remains to be seen, as it would seem to require a change to legislation.

If you have mortgage arrears, are facing re-possession or are at threat from a charging order, pick up the phone to a Help With Debt advisor.

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Tags: charging orders, mortgage arrears

This entry was posted on Wednesday, October 29th, 2008 at 1:43 pm and is filed under General Debt. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.