Home Equity & Debt

[pipsaholic]

Do courts and banks enforce the law to pay off debts expecting you as a home owner to release equity?

[des8]

Re: Home Equity & Debt

First the debtor would have to obtain a county court judgement.
If that is not paid or the arrangement to pay is broken they would need to obtain a charging order against the home. (if CCJ granted after 1/10. 2012 a charging order can be obtained immediately)
There are 2 stages Interim order and final order.
After the final order they would need to apply for an order of sale.


As a debtor you can argue against final order and order of sale, but to answer your question banks can and do, and the courts do enforce (but not automatically and not always)

[pipsaholic]

Re: Home Equity & Debt

what if your renting or shared ownership or own your home outright? Can they evict you?

[des8]

Re: Home Equity & Debt

If you are renting they cannot force your landlord to sell to cover your debt!

If a creditor obtains an order for sale he may enforce it immediately, or give you time.
It will depend on who & how much, and what equity there is in the property


You are asking quite generalised questions, about what is a complicated legal process.
It is not quite as black and white as it sounds as there are many reasons why a creditor would not be able to complete this process.