Post-Completion Issues and Arrears Flashcards
6 cards from real CEMAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Post-Completion Issues and Arrears flashcards as text
What is mortgage forbearance and what options might a lender offer?
Answer: Forbearance involves temporary concessions such as payment holidays, reduced payments, term extensions, or temporary interest-only periods
Forbearance is where the lender offers temporary or longer-term concessions to help borrowers in difficulty maintain their home.
What is the Pre-Action Protocol for possession claims and what does it require?
Answer: It is a set of steps lenders must follow before issuing court proceedings for possession, including exploring alternatives and providing information to the borrower
The Pre-Action Protocol requires lenders to exhaust reasonable alternatives, provide clear information about arrears, and give the borrower adequate time before starting court proceedings.
What happens to any surplus funds when a repossessed property is sold?
Answer: Any surplus after repaying the mortgage debt, arrears, and costs must be returned to the borrower
After the lender recovers the outstanding mortgage, arrears, interest, and costs of sale, any remaining surplus must be paid to the borrower.
What is a Suspended Possession Order and when might a court grant one?
Answer: An order granting possession but suspending it on condition the borrower makes agreed payments towards arrears
A Suspended Possession Order grants the lender possession but delays enforcement provided the borrower maintains current payments plus an agreed amount towards arrears.
What support services should a mortgage adviser direct a client to if they are facing financial difficulty?
Answer: To free independent debt advice services such as StepChange, Citizens Advice, and National Debtline
Advisers should direct struggling borrowers to free, independent debt advice services that can provide holistic support.
What is the effect of a bankruptcy order on a borrower's mortgage?
Answer: The mortgage remains as a secured debt, but the property may be sold by the trustee in bankruptcy to satisfy creditors
Bankruptcy does not eliminate secured debts — the mortgage remains, and the trustee in bankruptcy may sell the property to realise its value for creditors.