14. Handling Clients In Arrears Flashcards
1
Q
When should a lender issue a warning after a customer falls into mortgage arrears
A
15 days
2
Q
What options does the FCA require lenders to take when borrower has arrears
A
- extending the term
- changing the type of contract
- deferring interest payments
- treating shortfall as part of loan
3
Q
What is a mortgage shortfall debt
A
Still a shortfall on your mortgage at the end of the term
4
Q
What is an arrangement to pay
A
When the arrears are cleared by paying more than normal monthly payments for a specific time
5
Q
What is meant by power of sale
A
Written clause to say you have to sell your property and pay mortgage debt if you default on your mortgage
6
Q
What is foreclosure
A
When a lender seizes the property and sells it to recover the loss
7
Q
What is meant by subrogation
A
The right of an insurer to recover loses made by policy bought via higher lending charge
