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 an Individual Voluntary Arrangement (IVA) and how does it affect a borrower's mortgage?
Answer: It is a formal agreement with unsecured creditors to repay debts over a period, while the mortgage as a secured debt continues separately
An IVA is a binding agreement with unsecured creditors to repay a proportion of debts — the mortgage continues as normal since it is a secured debt.
What is the process for a lender to obtain a warrant of possession after a court order?
Answer: The lender must apply to the county court for a warrant if the borrower breaches the terms of the possession order
If the borrower breaches a possession order, the lender must apply to the county court for a warrant of possession, which is then executed by county court bailiffs.
What happens to joint borrowers when one dies during the mortgage term?
Answer: The surviving borrower typically assumes sole responsibility for the mortgage, and ownership passes by survivorship for joint tenants
For joint tenants, the right of survivorship means the property passes automatically to the survivor, who becomes solely responsible for the mortgage.
What is a 'breathing space' scheme and how does it help mortgage borrowers in difficulty?
Answer: A 60-day legal moratorium where most creditor action, interest, and charges are frozen while the borrower gets debt advice
The Breathing Space (Debt Respite Scheme) provides a 60-day period where creditors cannot pursue enforcement action and must freeze interest and charges, giving the borrower time to get professional debt advice.
What options are available to a borrower who cannot sell their property for enough to repay the mortgage?
Answer: Options include negotiating a shortfall agreement with the lender, a managed sale, a deed in lieu of repossession, or waiting for prices to recover
Several options exist including negotiated sales at a shortfall, payment plans for the shortfall, voluntary property surrender, or government support schemes.
What role does the Money Advice Service play in supporting borrowers with mortgage problems?
Answer: It provides free, impartial money guidance including debt advice tools, budgeting calculators, and referrals to specialist advice
The Money Advice Service (now MoneyHelper) provides free, impartial financial guidance to help people manage their money, including those with mortgage difficulties.