Mortgage arrears - pre-action protocol proposed

The Civil Justice Council (”We promote the needs of civil justice in England and Wales and monitor the system to ensure that progress to modernise it continues.”) has issued a consultation paper on a Mortgage Arrears Protocol.   This is going to be of interest to amongst others, lenders to residential developers. 

The consultation proposes a new mortgage arrears pre-action protocol to ensure that before proceedings are commenced for proceedings in which a residential possession claim is made by a lender against a borrower in mortgage arrears, all reasonable steps have been taken to avoid the necessity for litigation.

Responses to the consultation are requested by 23 May 2008.