New Study Reveals 75% of Repossessions Could Have Been Avoided if Homeowner Had Access to Basic Advice
London, United Kingdom, March 07, 2008 --(PR.com)-- A new study by the Mortgage Rescue Network predicts that 25,000 repossessions could be avoided in 2008 if the homeowners have access to basic advice, legal protection and support. Almost 53,000 individuals - from toddlers to pensioners will be made homeless unnecessarily because the current legal system is overlooking some of the most basic protections available to homeowners.
The study conducted in 2007 by the Mortgage Rescue Network in the UK highlighted that most homeowners were evicted as a result of being unaware of their legal rights, receiving bad advice or simply not getting the most basic of support at a time when many were vulnerable or too scared to take action.
Phil Martin, Director of the Mortgage Rescue Network adds: "The most important thing you, as a homeowner, must do is turn up for court. Repossession must not be accepted as an inevitability. County Court is not an intimidating wood lined hall, it is a small informal office and you will be sympathetically encouraged by the judge to tell your side of the story."
As a result of the study, the Network is lobbying government to act now to avoid a repossession crisis in 2008. Their recommendations include:
1) The provision of a duty solicitor in court for all homeowners.
"If a thief stole a pack of chewing gum and was arrested, they would receive more protection in court through the presence of a duty solicitor than someone who could have diligently paid their mortgage every month for years" states Phil Martin. "Unfortunately our system is set up to protect criminals more than homeowners who could have simply fallen on hard times".
2) Access to clear information and advice.
Most repossessions can be stopped even when an eviction warrant has been issued. We desperately need to educate people about the form N244 which allows homeowners a last minute emergency hearing. At this last minute hearing and even without lenders agreement, the judge can authorise a new arrangement to repay arrears by installments or by capitalisation. If an arrangement would be unsustainable a judge can suspend the warrant and allow time to sell.
3) An urgent review of benefits available to homeowners in financial hardship.
A government contribution to mortgage interest is available. But why is it only available after 9 months of unemployment? Why does it only cover interest up to £100,000 of borrowing, when an average UK home costs £200,000? Why do lenders unreasonably add this shortfall in payments to the arrears balance instead of, to the capital. This practise makes repossession shortly after a benefits claim is approved, almost inevitable.
4) Why have Mortgage Lenders, Housing Associations and Councils abandoned their Mortgage Rescue Schemes?
Such schemes were widespread and available throughout the 1990's, but have largely disappeared. There is a tremendous need for Mortgage Rescue or Sell and Rent Back schemes. Some Buy to Let Investors and Private Investment companies have recently committed to providing this lifeline. Potential assistance for desperate homeowners is restricted however by Housing Benefit regulation 9(1)(h) which exempts Housing Benefit payments, in the majority of cases, from being made to former homeowners for 5 years in the same property.
The Mortgage Rescue Network exists to provide extra options for homeowners who are at risk of repossession.
The Network has been established to counteract the unacceptable rise in repossessions in the UK.
The Mortgage Rescue Network, probably for the first time, brings together a coalition of Long Term Property Investors, including rent-back and repossession specialists, as well as FSA Authorised Mortgage Brokers, Letting Agents, Estate Agents and Debt Councillors.
Most of their work is not chargeable and not for profit.
Contact Info:
Phil Martin, Mortgage Rescue Network -
0800 8778 374
www.MortgageRescueNetwork.com
email: phil@mortgagerescuenetwork.com
###
The study conducted in 2007 by the Mortgage Rescue Network in the UK highlighted that most homeowners were evicted as a result of being unaware of their legal rights, receiving bad advice or simply not getting the most basic of support at a time when many were vulnerable or too scared to take action.
Phil Martin, Director of the Mortgage Rescue Network adds: "The most important thing you, as a homeowner, must do is turn up for court. Repossession must not be accepted as an inevitability. County Court is not an intimidating wood lined hall, it is a small informal office and you will be sympathetically encouraged by the judge to tell your side of the story."
As a result of the study, the Network is lobbying government to act now to avoid a repossession crisis in 2008. Their recommendations include:
1) The provision of a duty solicitor in court for all homeowners.
"If a thief stole a pack of chewing gum and was arrested, they would receive more protection in court through the presence of a duty solicitor than someone who could have diligently paid their mortgage every month for years" states Phil Martin. "Unfortunately our system is set up to protect criminals more than homeowners who could have simply fallen on hard times".
2) Access to clear information and advice.
Most repossessions can be stopped even when an eviction warrant has been issued. We desperately need to educate people about the form N244 which allows homeowners a last minute emergency hearing. At this last minute hearing and even without lenders agreement, the judge can authorise a new arrangement to repay arrears by installments or by capitalisation. If an arrangement would be unsustainable a judge can suspend the warrant and allow time to sell.
3) An urgent review of benefits available to homeowners in financial hardship.
A government contribution to mortgage interest is available. But why is it only available after 9 months of unemployment? Why does it only cover interest up to £100,000 of borrowing, when an average UK home costs £200,000? Why do lenders unreasonably add this shortfall in payments to the arrears balance instead of, to the capital. This practise makes repossession shortly after a benefits claim is approved, almost inevitable.
4) Why have Mortgage Lenders, Housing Associations and Councils abandoned their Mortgage Rescue Schemes?
Such schemes were widespread and available throughout the 1990's, but have largely disappeared. There is a tremendous need for Mortgage Rescue or Sell and Rent Back schemes. Some Buy to Let Investors and Private Investment companies have recently committed to providing this lifeline. Potential assistance for desperate homeowners is restricted however by Housing Benefit regulation 9(1)(h) which exempts Housing Benefit payments, in the majority of cases, from being made to former homeowners for 5 years in the same property.
The Mortgage Rescue Network exists to provide extra options for homeowners who are at risk of repossession.
The Network has been established to counteract the unacceptable rise in repossessions in the UK.
The Mortgage Rescue Network, probably for the first time, brings together a coalition of Long Term Property Investors, including rent-back and repossession specialists, as well as FSA Authorised Mortgage Brokers, Letting Agents, Estate Agents and Debt Councillors.
Most of their work is not chargeable and not for profit.
Contact Info:
Phil Martin, Mortgage Rescue Network -
0800 8778 374
www.MortgageRescueNetwork.com
email: phil@mortgagerescuenetwork.com
###
Contact
Morgage Rescue Network
Phil Martin
0800 8778 374
www.MortgageRescueNetwork.com
Phil Martin
0800 8778 374
www.MortgageRescueNetwork.com
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