Scottish Government
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Help for those facing repossession
Recommendations from an independent working group advising on further help to homeowners facing repossession are to be taken forward by Scottish Ministers.
The Repossessions Working Group was set up in January 2009 with membership drawn from lawyers, mortgage lenders, debt advisers, and consumer interests.
The group was asked to consider whether existing legal protection for homeowners is adequate and, if necessary, to make recommendations on how it might be strengthened.
Chaired by the advocate, Adrian Stalker the group's main recommendations include:
- Legislation to ensure that the protection available through the Mortgage Rights (Scotland) Act 2001 applies in all repossession cases, instead of just those where the home owner defends the action
- Legislation to require lenders to show that they have considered every reasonable alternative to repossession, and to ensure that the courts consider the extent to which they have done so when deciding on repossessions cases
Cabinet Secretary for Health and Wellbeing Nicola Sturgeon said:
"With Scotland bearing the brunt of a global economic downturn house repossessions are causing misery for many Scottish families.
"That's why we moved quickly, and set up this group asking specifically for recommendations that would help alleviate the distress caused by the threat to of repossession.
"We will now take forward the group's recommendations to assist homeowners facing the threat of repossession.
"I would like to thank Adrian and his colleagues for preparing such a thorough, detailed and thought-provoking report."
