Credit-crunch family spared from eviction

A FAMILY with a disabled child has been saved from eviction thanks to a pioneering rescue plan by Oldham Council.

The council has become the first in the country to stop a property being repossessed using the shared equity mortgage rescue package.

The family, who wish to remain anonymous, have had their property specially adapted to make it accessible for their disabled son.

The value of their home exceeded the Government’s eligibility criteria but council officers argued a strong case for flexibility due to the modifications that had already been made.

The Government scheme can be used in exceptional circumstances when eviction looks like the next step.

Home owners can either sell their property and become tenants or take an equity loan to reduce their mortgage.

Oldham volunteered to become a fast track authority in the early stages of the credit crunch and was the first in the North-West to complete its primary mortgage-to-rent rescue deal last month.

Councillor John McCann, cabinet member for community services and housing, said: “This is a tremendous achievement for Oldham Council, not simply because we’re the first in England to complete such a deal, but also because it has ensured that a local family can retain critical facilities within their own home.

“This household has now entered into a shared equity scheme with Plumlife, part of Great Places Housing Group, who are the North-West’s regional agent for the Mortgage Rescue scheme, and the new arrangement has substantially reduced the family’s monthly mortgage repayments.

“The rescue plan is only available as a last resort when all other options have been explored with the mortgage lender, but in cases like this it can be a lifeline.

“This service is just part of a wide-ranging package of measures that we put in place to help people experiencing difficulties related to the credit crunch. Our message is that if you are experiencing acute financial problems and need advice then you should contact our free hotline number on 0800 854 2789.”

The hotline, set up by First Choice Homes, has been contacted by 93 households since it was set up last December.

To date, 19 have now been or are being assessed for eligibility. This is Oldham’s second completed rescue package and a further six households have also been accepted and await processing.

The council also runs a court desk service in conjunction with Oldham Citizens Advice Bureau and Oldham Law Centre at Oldham County Court which hears the third highest number of repossession hearings in the North-West.

It offers free representation and advice on the day of the hearing, leading in many cases to ongoing support or assistance with debt and benefit issues.

In 90 per cent of cases to date, possession has been suspended or the case adjourned to enable further work. Since September, 2008, more than 120 households have been supported in this way.