House Repossession

MrsP_5

This is a really abridged version of a very long story so I hope it makes sense.

I owned a house with an ex-partner (joint mortgage) and it was repossessed in 1998. Since then they have written to me very rarely asking for repayment of the outstanding amount of the mortgage. This amount differs from £19k to £23k depending on the sender of the letter (as far as I can work out the mortgage has changed hands several times making it difficult to work out exactly how much is owed).

I've managed to ignore the letters (stupid I know) but recently they have been coming more regularly. If anyone can answer the following I will be eternally grateful:

1) I am now married - can they make my husband "inherit" my debt?
2) They are only chasing me for repayment not my ex. How do I make them chase him as well?
3) I have heard that it is possible to make an offer of repayment at a drastically reduced amount -how do I do this?
4) My husband and I have continued to be able to get credit for various things so I m assuming our address isn't blacklisted. Is this a good sign?

Any help would be gratefully received. This has been hanging over us for years and is really starting to make me ill.

Thank you

Tootsie_Roll

1) No - although if you jointly own a property they could place a charge against 'your half'.
2) Tell them where he is, it may be that he is not worth chasing whereas you are. Sadly for you the debt is joint and several which means you will have to clear the whole balance if he doesn't pay anything (they could get a charge against your new home for the fulll amount).
3) Yes - and a very good idea as they get a percentage of their money sooner and you get a drasticaly reduced settlement figure. Legally it is a good idea to make the offer through a third party. In your case get your husband to make the offer on your behalf in 'Full and Final settlement' - there are plenty of sample letters if you do a search on the debt free wannabe section. Start low and make them haggle you up - start at 30% (of the full debt).
4) Possibly - if it was only the mortgage debt you had together then it may not be registered with any CRA.

Moortgage shortfall debt such as your can be pursued for 12 years so I would advise you to sort it out asap - especially if it is starting to worry you.

jitsuguy

Mrs P,

It might be worth sending off for your credit reports at a cost of only £2 each from Experian, Equifax and CallCredit and seeing if there is a debt on them for that amount.

Plus my father ended up with a shortfall from his previous marriage and knowing him he just ignored it and now they don't chase him at all. Doubt they even know where he is!

Jitsuguy

silvercar

Legally it is a good idea to make the offer through a third party

Is this because you acknowledging the debt could allow the 12 year clock to restart?

Take advice from CAB or similar on this (try posting on the debt board); it may be that by ignoring the debt for 12 years they can no longer chase you.

Tootsie_Roll

silvercar wrote:

Is this because you acknowledging the debt could allow the 12 year clock to restart?

Take advice from CAB or similar on this (try posting on the debt board); it may be that by ignoring the debt for 12 years they can no longer chase you.

To your first question: No it has nothing to do with the Statute of Limitations but it is a point of law where they can accept a payment from you that you offered in F&F and still chase you for the remaining balance - this doesn't apply if the offer comes from a third party.

Q2) Yes, mortgage shortfall debt is statute barred after 12 years - as the poster is starting to feel ill that they are chasing her after 6 years I don't think waiting another 6 years will help. In addition, now that they have located her and the debt is high (£19k - £23k) they will most likely continue to chase her and she could end up with a ccj which definately will affect her and her new husbands credit rating.

One possible avenue she can look into is this: Any Council of Mortgage Lender Member has agreed not to chase mortgage shortfall debt after 6 years not 12 - assuming no payment or acknowledgement has been made in that time they should not pursue it. I don't know how it would work if they then sold the debt to a third party who is not a CML member.