Mortgage shortfall from 1995

GeorgeUK

Good luck Michelle.

To check for a CCJ, you could try the registrytrustonline site - not sure how much it is to search though.

michelle667667

OMG!!!! Just re read the letter I've been sent and its from a solicitor acting on behalf of rbs and they say the house wasn't sold until 12 July 2000. I gave the keys in 1995 so can they start the debt from when the house was sold or when I gave the keys in.Help that makes it under 10 years now. So do I start to worry..Urgently need advice from some very clever person with knowledge of this.I'm scared again!!:eek: Also checked for ccj's and none are registered but do they comeoff after 6 years anyway in which case they wouldnt show would they?? I need help PLEASE!!!

Tixy

Hi michelle

If you read the link that both I and Fermi put on the previous page you will see




Capital The lender has 12 years from either:

• the last time a payment was made on the account; or
• the last time you acknowledged that you owe the debt;

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.

So the last time you paid was presumably before 1995. So it will come down to what paperwork you may have ent to the mortgage co or the solicitor since then. Do you think you may have sent anything to them in the last 12 years that would admit that you owed the money?

nicolascowen

these have been coming up more and more in the past few months and it seems that they are coming up for the limit of statute barred, so are being resurrected. The date that the debt became due was when it was sold and therefore the shortfall calculated. They do not do a CCJ as it is called subrogation (my old banking exams!!) the insurance company that supplied the insurance policy to protect the lender from any shortfall have a right to chase this debe within 12 years (in England) they have started to do this just before 12 years meaning that they can now chase as long as they like. Best thing to do is to follow their requests and fill in income and expenditure forms to see what you can compfortably afford to repay. Remember that it is not in their interest to make you bankrupt unless you have assets that would be left after the govt etc have had their chunk. It is much more in their interest to get a monthly repay from you, your previous partner would also be liable and if they could get it out of their assets it would be paid in full - that's the joint and severally liable bit. Hope it helps

michelle667667

I've made a mistake with the letter I recieved i've re read it and its from a solicitor acting on behalf of rbs and they said the house was actually sold in july 2000. Does this mean they can enforce the debt because it hasnt reached the 12 yr limit needed to be statute barred?? Also I have checked my credit file and i havent had a ccj from them either but i know they get taken off after 6 yrs but would it still show up on my credit file??. I handed the keys in 1997. Please help me to understand this as its really starting toaffect me now I've already stopped answering my phone and its losing me business as i have a pub which is also worrying as they could take that off me too help me someone please!!!!!!!!!!!!!!!!

michelle667667

Gosh very conflicting advice guys!! I cannot afford to pay anything realistically Iam actually running at a loss at my pub and am on family credit so paying back £37000.00 is just not negotiable...

nicolascowen

what is important is that you do what fits for you, they do have the right to chase you as the sale was in 2000 get good advice from someone who knows this field and consider all options including bankruptcy although I wouldn't think that you would be able to run a pub due to handling money once bankrupt. If you can't afford anything tell them but do it in a constructuve way by proving it via income and expenditures. They've waited 10 years so they can wait further, also a court would only give them money based on your income and expenditure aswell.

michelle667667

They also sold the house in 2000 for £8,250 well below the rate for a house in that year will this have any bearing can i contest this figure. How do I find out if it was sold in that year as i believe it to be earlier because why would they keep hold of the house for 2 years after i handed in the keys. Ithink they have tried to find me but I have never, since I left the property, ever acknowledged the debt or them. I'm frightened that as soon as I phone them or send in an expenditure form ill be liable for the debt as they have only given me until 20 dec to reply..guys help!!!!

Tixy

Hi Michelle

Its is difficult when people give conflicting advice.

So I would suggest you give national debtline a ring. They are experts and really helpful to talk to. They'll talk through your full situation and confirm the situation. Please do this before contacting the solicitor. And certainly before agreeing to pay anything.

http://www.nationaldebtline.co.uk/ 0808 808 4000 Its even a free number to ring - you have nothing to lose! They are a charity and do not charge for their advice - so you'll know it will be impartial.

I'm sure they will tell you that this is statute barred now based on what you have posted.

GeorgeUK

I would contact the nationaldebtline for advice on when the last "payment" woudl have been. Was it when the sale went through or when you last made a payment. I think it is 12 years since the last payment, but if the house is sold later, they have to contact you within 6 years of the sale. I'm sure there was something on the FSA site about this.

You may be able to get the house price info here.
http://www.nethouseprices.com/index.php?con=Search-Sold-House-Prices

CCJ's might disappear from your credit file after 6 years, but it should definately be retained by the registry trust. You should be able to check that site, but it might be £8.50 per search.

Edit:

The Financial Services Authority rules
From 31 October 2004 the Financial Services Authority (FSA) has taken over the regulation of mortgage lending and problems with existing mortgages.

The Mortgage: Conduct of Business Rules say that a lender “must deal fairly with any customer who has a mortgage shortfall debt”. If the lender decides to take action to recover the shortfall they must make sure you are told about this in writing, within six years of the date of sale of the house. If the lender does not do this, you can complain to the Financial Ombudsman Service.

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

I would call them on 0800 808 4000

It looks like you may need to argue your case if they tried to contact you but depending on when this was may depend on what your next step is.

Council of Mortgage Lenders policy
The Council of Mortgage Lenders (CML) has a policy on the collection of mortgage shortfalls which should be followed by their members as a point of good practice.

From 11 February 2000 the CML says anyone whose property was repossessed and sold and who has not been contacted by their lender within six years from the date of sale will not be asked to pay the shortfall.

Warning
The lender may argue that if they can prove they tried to contact you that this counts as ‘contact’, even if you did not receive the letter.

Under the CML policy, if your lender contacted you before 11 February 2000 then it appears that they can continue to try to recover the shortfall even if your house was repossessed and sold more than six years ago. If this applies to you then you could try arguing that it is unfair for the lender to keep trying to recover the money if your house was sold over six years ago. Point out that they have limited the recovery period for new cases and have a ‘commitment to fair and sympathetic treatment for people for whom possession cannot be avoided’.

Try sitting down with as much paperwork as you can to write down a timeline so that you have specific dates to state what happened and when. They may be chancing their arm, but definately get advice from nationaldebtline before writing or contacting them.