Lenders are taking an increasingly tough approach when mortgages fall into arrears, but their repossession claims can sometimes be resisted when justified by circumstances.
Recently, a woman who had contributed to the mortgage on a house owned by her husband’s cousin was faced with an application for possession after her marriage broke up and significant arrears built up on the mortgage. She claimed she had built up an equitable interest in the property because she had paid the mortgage. The bank agreed that they would not seek possession of the property if she paid the arrears – which she did – and that it would treat any payments made as being made on behalf of her husband’s cousin.
When she fell into arrears again, the bank again sought possession. However, the court ruled that it was prevented from seeking possession until the divorcing couple’s financial arrangements could be settled.
It would have been easy for the woman to assume she had no right to remain in a house that was not hers, but by taking timely advice she was able to successfully oppose possession proceedings. If your marriage is in difficulty we can help you with all the legal issues that arise.
