July 19, 2010
Despite signs of a long overdue market recovery, home repossessions could increase as lenders enforce suspended possession orders against unprepared owners, claims the Consumer Credit Counselling Service (CCCS).
CCCS, the UK’s leading debt charity, believes that a number of clients with suspended possession orders hanging over their heads could soon find themselves property-less as lenders forgo the leniency shown over recent months.
“There is no doubt that lenders have shown leniency towards debtors during the recession by not enforcing suspended possession orders. However, this leniency may have been partly determined by the markets,” argues CCCS Director of External Affairs, Delroy Corinaldi.
“In addition, some lenders are increasingly showing reluctance in allowing struggling debtors to switch to interest-only mortgages as a short term solution, giving people the necessary breathing space to find other more sustainable options.”
Suspended possession orders are distributed when the court decides that a lender has reason to evict a borrower, but that it would not be fair to do so. A suspended order allows residents to stay as long they meet certain conditions.
Such conditions will be explained in court orders, for example, borrowers may be ordered to pay off money owed through certain weekly or monthly amounts.
However, if conditions are not adhered to, lenders can apply to the court for the bailiffs to enforce an eviction, quickly and without advance warning.
If you have a suspended possession order hanging over your head and are worried about what the future may bring, assess your situation and potential options with property solicitors today.
Expert advice could be the difference between a winter spent under house and home or wandering the unpredictable property market once more.
