Please help!!!!!!!!!!!!

Sarah1970

I purchased a house back in 1993 with my ex husband - my name was only put on the mortgage to give us an extra £1000.00 onto the amount we could borrow, and this was my child benefit that I claimed for my son as I didn't have any other earnings due to being a housewife.

My ex husband was a gambler so it wasn't long before we (he) fell into arrears with the mortgage and like you the house was repossessed with around £1000.00 of arrears. I was unable to pay this due to me having no earnings other than my child benefit.

The house was repossessed in June 1995. The Halifax made no attempts to advertise the house on the open market for the chance of receiving the correct value of the house, instead they sold the house at auction 12 months later for £17,000 (£20,000 under the market value!!!) by this time the property had been vacated for 12 months and was been left to fall into a state of disrepair, kids had graffitied the outside of the property and the fence had been damaged etc. This devaluing the house greatly, whereas if were were able to stay in the property and sell it ourselves we would of received a price to cover the outstanding mortage and more.

Now 10 years later having heard nothing from the Halifax, out of the blue I receive a letter from debt collectors acting on their behalf demanding just under £23,000. At the time of taking out the mortgage I do remember them saying that should we default on the mortage we are insured by Sun Alliance Insurance.

Worried, I contacted the debt collectors to ascertain as to why after 10 years they have suddenly decided to contact me for this debt. They have made no attempt to contact my ex husband and offered me a deal, that if I paid them £6000.00 in a lump sum they would exonerate me from the outstanding amount. I informed them that I would need to seek professional help before agreeing to anything, however their comment was that they were not prepared to stall the account whilst I sought this advice!!!!!!!!!!

I did however come across another person who was also in a similar situation, and after sending a letter their debt was completely wiped out. I therefore went along the same route and sent a letter to the debt collectors requesting copies of all marketing material for the resale of the property, details of the insurance policy with Sun Alliance, the mortgate contract, details of the endowment policy, copies of the valuation relating to the sale of the repossed property etc. I requested all this information in February 05 in preparation for me seeking legal advice, and to this date I still have not had any reply from the Halifax.

I did receive a telephone call approx 2 months ago asking why I had not made any offer/proposals to settle the debt. I informed the caller that I was awaiting a reply to my letter of February 05 with copies of the information I had requested. They informed me that they had sent this information in April 05. Whether they did or not I did not receive it and am still waiting now!!.

I have heard about this 12 year thingy!!! - since they sold the house in early 1996 does that mean that they only have two years left to chase me?

If anyone can offer any good advice to prepare me for the next time they contact me I would be extremely grateful. I just haven't got this sort of money and even if I made an offer I would be paying it off until the day I die!!!!!!!!!

Thanks in advance

dwsjarcmcd

Sarah,
2 things to add
1 - Most importantly, get legal advice now!
2- The Sun Alliance policy to which you refer will almost certainly have been a 'mortgage indemnity' policy. You paid the premium but unfortunately the beneficiary will be the Halifax, not you. There was a real scandal about these in the financial press and they are only used in high 'loan to value' mortgages now. But it is a red herring, it does not cover you.
It sounds to me that you have a case to discuss regarding your ex-husband, your name being put on and time barring etc but you need professional advice

Bossyboots

I thought debts were time barred six years after the last acknowledgement of them. I will look it up again later if no-one else comes along with the correct definition.

Sarah1970

Thanks, I will be seeking legal advice, however I just wanted to know if there was anyone out there that could prepare me for this beforehand, and why are the Halifax chasing me and only me after all this time, it seems so unfair considering I was the one who wasn't earning at the time!!!!!!

Thanks again

Sarah1970

Also can anyone shed any light onto the 'Voluntary code' which the Halifax agreed to several years ago whereby they would not pursue shortfall debts that were over six years old.

Thanks again

dwsjarcmcd

Sarah,
I think that reason may be doing this now is that something at the back of my mind says that mortgages have a time bar of 13 years, not 6. Bossyboots is going to check this but if I am right this will explain the reason. Also, I suspect that Sun Alliance (now Royal Sun Alliance) will not payout unless the Halifax have made some reasonable attempt to recover the money and mitigate the loss.

peterg1965

Wow, this is incredible that it takes 10 years for you to be chased up for a debt! Agree all that has been said before, stick to your guns, seek legal advice, did you sent the letter to the debt collectors by registered delivery? Insist that they send it all again.

Sarah1970

Thanks, they say they received the letter and they posted a reply (hu humm!) They have said they will send all info again, but still i am waiting!!.