Overview

This bill aims to protect homeowners from repossession by requiring mortgage lenders to seek court permission before selling a property used as a dwelling. The court will have the power to postpone or suspend the sale if it believes the homeowner can resolve the debt or breach of contract.

Description

The Home Repossession (Protection) Bill amends the Law of Property Act 1925. Specifically, it adds a new clause requiring mortgagees (lenders) to get court approval before exercising their right to sell a property used as a dwelling if the mortgage is in default.

The court gains powers to:

• Adjourn proceedings.
• Stay or suspend sale orders.
• Postpone sale dates.
• Impose conditions on the homeowner (e.g., repayment plan).
• Vary or revoke imposed conditions.

These powers are granted if the court believes the homeowner can remedy the situation within a reasonable timeframe.

Government Spending

The bill doesn't directly specify government spending. However, increased court workload and potential for increased legal aid claims might lead to some additional government expenditure.

Groups Affected

• Homeowners: Potentially benefits homeowners facing repossession by providing them with more time and options to avoid losing their homes.
• Mortgage Lenders: Faces added administrative burden and potential delays in recovering loans.
• Courts: Will experience an increased workload due to the additional applications for permission to sell.
• Legal Professionals: Potentially increased demand for legal services related to mortgage repossession.

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