Great news: HM Government is to close a gaping legal loophole that would allow a lender to repossess your home without even going to court. The decision comes after an all to familiar case earlier this year when lender GMAC-RFC repossessed a property and the previous owner was evicted. This incident started a campaign by charities to stop house repossession orders being issued ‘at the drop of a hat’ and close the loophole that allows lenders to take a property from a homeowner who had missed just two repayments
The decision to go with the charities was made by the Ministry of Justice after an eight-week consultation and will hopefully ensure that the likes of GMAC-RFC cannot simply force a homeowner out of their property based on weak arguements and slippery lawyers. Thankfully, they were fined £2.8m by the Financial Services Authority (FSA) for mistreating customers so there is some justice in the world (incase you were beginning to doubt the fact).
