Corporate Strategy & Finance (Asset Based Lending) - Alert

    11/19/2008

    Mortgage arrears and repossession actions: new rules for possession claims

    We are now living in difficult financial times and we find ourselves in a situation so radically changed from the beginning of the year as to be almost unrecognisable. In times of change it is natural to look for the familiar. Lending to individuals against the security of a major asset, such as the residential property of the borrower, has always meant the creditor has a right to sell the asset for the repayment of the debt.

    Whilst this principle remains true, in a recent response to the current economic climate, a significant new measure has been introduced with a view to assisting a debtor retain his home when in mortgage arrears. This change could mean that it takes longer to successfully issue possession proceedings in respect of residential property and recover the money due to you.

     

    In May 2008, international law firm Hammonds became a limited liability partnership.  Hammonds LLP and its affiliated undertakings has offices in Birmingham, Leeds, London and Manchester in the UK, and in Berlin, Brussels, Beijing, Hong Kong, Madrid, Munich and Paris.