Front line: A tweak in time
Published 20 October 2009
It would only take a minor legal reform to save thousands of households from the threat of being repossessed
Free legal advice and the plan to expand mortgage rescue schemes run by local authorities may offer some crumbs of comfort to the thousands of householders in danger of losing their homes through arrears.
But the government could take much more effective action to lift the threat to people in arrears through a relatively minor legal reform.
Under the present law, if a mortgage lender seeks a court order to obtain possession of the house of a borrower in default, the court is empowered to adjourn the proceedings if that borrower is likely to be able to pay off the arrears ‘within a reasonable period’ while continuing to make regular monthly payments.
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