Six-month delay to be put on mortgage arrears legal actions
Saturday February 07 2009
THE Government has revealed plans to enforce a six-month delay before mortgage lenders can take legal action against homeowners in arrears.
It also stipulated that repossession of a family home would not take place within a two-year period at talks on economic recovery earlier this week.
The Government unveiled the draft proposals on its new statutory code of practice on mortgage arrears and repossessions, which it said it would introduce early this year.
A document presented to the social partners at the talks reveals that the new code will apply to all mortgage lenders, including those who are not party to the current voluntary code.
In the proposals, the Government gives a firm commitment that a delay of at least six months will be enforced before legal action can take place.
But it only "expects" that repossession of a family home would not take place within a two-year period of a person losing their job and falling into arrears.
In addition, the troubled mortgage holder would have to show they were making sufficient attempts to keep up their repayments and engaging with the lender, money advice bureau or other advisory services.
- Anne-Marie Walsh Industry Correspondent
