unpaid mortgage debt from 15 years ago

charlearose

can any one advise on this please
around 15 years ago my sisters ex husband went bankcrupt on a joint mortgage on there house my sister did not go bankrupt so the banks pursued her for the full amoutn at the time 16000
she could not pay it as she was on income support and eventually the letters stopped arriving and she sort of forgot about it although she get the odd letter from debt collecting agency
anyway she is married now and her new husband want to buy a bigger house as they are renting
what my sis is worried about is that if she dose get a mortgage for a new house can the old debt that she still owes of 16000 and probalby more with interest so can this debt now resurface as such and can the mortgage company put a charge on any new property that she and her new husband might buy
he wants to put down a big deposit of around 30k from the sale of his house but obvioulsy my sis is worried about this
she wont move unless she has her name on the house as she has a really nice housing association house that she will obviolsy have to give up if she buys she is kind of a head in the sand sort of person and thinks they wont trace or find her but i would imagine that they are owed the money dont like lossing money

copier_guy

Hi,

Im pretty sure the limitations on mortgage debt is 12 years.

Has there been any form of payment from your sister to the debt?

charlearose

yes in the past small payments but they wanted more than she could afford so she basically stopped paying its not the mortgage company it the insurance company that paid the mortgage when it went was repossed

i also read that it was twelve years but if they had contacted you within those 12 years then the debt was still there i did read somewhere about couple being approched 10 -15 years on for the old debt cos they walked away and were not contacted
what she is thinkin is that her kids are 16 and 18 now and she is working and

that maybe this is logged somewhere (lol) and they will contact her as she could now afford to make payments

fiveyearplan

It is 12 years from the last payment or contact she made with them.

fermi

Have a read through the info here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls