Reposession. How many years until the chase stops

LULULU1

Hi Can anybody tell me how many years after a repossession a company can come after you for the money which they have lost. Is there a general time span after which they don`t bother. In particular the Halifax Buliding Society.

dwsjarcmcd

I think they can recover their losses up to 16 years after the repossession. Also, in many cases it may not be the lender who has the debt, but the insurer who provided the indemnity cover to the lender.

Cat695

its 12 years....however if they contact you within that time then the 12 years starts again

its 6 years for loans

12 years for mortgages

SouthCoast

I know folks who are still paying for their early 1990's repossessions.

oilit

SouthCoast wrote: »

I know folks who are still paying for their early 1990's repossessions.

now that is incredible

silvercar

They have 12 years to make contact with you. Once they have made contact the debt is acknowledged. The payment plan can last for decades! Think of all the interest that will be charged on the outstanding debt from the time the property was repossessed to the time that they start a repayment plan. Once you are back in communication, they will negotiate a one off payment to settle the debt.

If you had an indemnity policy, it is quite likely the policy will have paid out to settle the shortfall. The debt company will then try to find you to secure repayment of the debt.

SouthCoast

One scenario that I envisage is that debt collection companies will buy residual land and property debt for say .10p in the pound, sit on it for 10 years and then start chasing.