Old Mortgage Debt

katsplat1

Hi

I am looking for some advice.

11 years ago my ex and I split up. After I left him he declared bankruptcy. I have had no communication at all with him.

Out of the blue last month I received a letter from the bank our mortgage was with telling me that I owed them £12k. I know that my ex had the house reposessed and it was sold at auction. I was joint on the mortgage with him.

Can they come to me after all this time for this money?

Help!!

Kerrie

Matt1982

I presume you were on the mortgage with him?

I'm afraid yes they can come off you.

Xbigman

Debts on property are statute barred after 12 years. After about 11 years lenders make much more of an effort to locate you before time runs out. Thats why they have contacted you now.
Lenders agreed a few years ago not to start proceedings to recover money owed on property after 6 years. Unscrupulous lenders ignore that and pursue you anyway. Who is your lender?
You need to work out exactly when you last had contact with the mortgage company regarding this debt. After 12 years you are completely safe. After 6 years you can claim non contact for over 6 years and they can't start proceedings. That defence is not watertight so for now simply ignore all their letters. Don't write, phone or do anything to contact them. If they do pin you down start by admitting nothing and send the 'prove it' letters you'll find on the debt free board.
Good luck.
Regards



X

Annisele

Do you have any idea when the house was repossessed? I know you said you split up with your ex 11 years ago, but I'm not entirely clear whether the repossession was shortly after your split or years later.

But in principle, yes, they can come after you for the money. Whether you'd end up being forced to pay them depends on a number of things - including, as Xbigman says, whether they've run out of time to claim.

Dan_1976

All true, just dont talk to them, answer calls etc.

You are and alway were liable for this debt. Was it repo'd after he was discharged?

katsplat1

Thanks for all your responses. My ex was not discharged before the repo. The repo happened within a couple of months of his bankruptcy (back in 1999). I have had no contact at all with C&G regarding this debt except for this letter. I am presuming they found me by tracing me through the electoral register. I have not acknowledged this letter at all nor does my ex know anything about it as we have never spoken since the day I left. We split on very bad terms after he put me in hospital and my brothers collected my posessions from the house - which my ex then moved his new girlfriend into and lived in until the repo.

I feel guilty not responding but then I feel angry that I am in this situation and he is living the life of riley like nothing ever happened (I get the goss off an old mutual friend who I am in contact with via facebook but doesn't know the ins and outs of my life!).

poppy10_2

I'd repost on the Debt Free Wannabe board, they have more knowledge on how to deal with debts that are coming up to their stature-barred limit

charlea

im not 100 percent sure of this but my husbands ex is in this posistion my husband went bankrupt and they chased her for the debt of the house

you would need to double check but im pretty sure that they have 12 years from the last payment/aknowlegement of the debt her twelve years is up in dec this year and she was aboutu to buy a house with new partner but stopped when she realised that it wasnt a good idea cos of this debt

so def do make a payment or aknowlege the debt regardless of when the house was repossed

The lender has 12 years from either:

• the last time a payment was made on the account; or
• the last time you acknowledged that that you owe the debt; to start action to recover the capital owed on the mortgage

Acknowledgement and payment

There are two ways for the 12 year time period to start running:

• the 12 year time period starts running from the last time the lender contacted you and you agreed in writing that you owed the money. This is known as ‘acknowledgement’;

or

• the 12 year time period starts running from the last date you or someone else, e.g. who owned the house jointly with you, made a payment to the lender

if your ex or you were to make a payment on the debtvnow then it would start the 12 year ticking again for them to chase you ( check about your ex as he is bankrupt so not sure about this )

if your in the last year of the twelve years which you think your are they are looking for your or your ex as after the 12 years are up there is very little if anything that they can do

if your ex was bankcrupt then depending on when this happened they wont get !!!!!! all from him so your the easy target i would sit tight and hold it out but def dont offter them anything even a pound i have read that they will accept the min offer then refuse or higher it later just to get the clock ticking again

there are also other laws that came into place in early 2000 ( cant remember the exact date/year) but it was something that if you hadnt been contacted within six years then it was unfair to pursue you but i think it was a volunatry code for the banks and it depended on when it was exactly that you were repossed and i think it only apply to mortgages taken out after 2000

hope this helps
there is more info here
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

charlea

sorry i meant to say dont aknowledge anything /pay anything at the moment untill you know your position

Trollfever

Bear in mind that in Scotland the debt can last for 20 years.


How long can I be pursued for the debt?

If your home has been repossessed and sold, mortgage shortfall debts can be pursued against you. If the lender obtained a sheriff court decree for repayment of the debt against you they are likely to have up to 20 years to pursue you.
If on the other hand there is no court order, e.g. you gave up the house before the court date, the lender may be restricted to trying to recover the debt within five years of the date of your repossession.
ADVICE
This is a complicated area of law known as 'prescription and limitation' under the 'Prescription and Limitation Act 1973'. You should seek advice from a solicitor if you think this rule applies to you.
The time period starts running from the last time the lender contacted you and you agreed that you owed the money or when you last made a payment to the lender.


http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=14_mortgage_shortfalls