**Repossession/outstanding sum some 12 years later**

JJ27_2

Double edged problem here.

My husband (long before we got together) had a house back in around 1989-1994 and it was repossessed.

He had a similar letter around 2 years ago but nothing came of it but then got another letter out of the blue a day or so ago saying:

We have been instructed by Abbey (formerly National & Provincial Building Society) to contact you following the sale of your former property at ****.

Unfortunately, the sale price achieved was not sufficient to pay off your mortgage debt and you are now responsible to repay the outstanding sum of £23,178.83.

..Following on with lots of blah 'send us a financial declaration form and 3 months bank statements' and 'negotiating a settlement' blah, blah'ing...

So, what can be done about this? We can't afford to pay that, I am unable to work and on disability benefits and he works full-time just to cover our essentials.

This place was a joint mortgage and when the first letter came around 2 years ago, he asked if she was being persued for it and apparently she was and was paying her share but that can't be right, it was something like a £40,000 mortgage. That amount they are asking for doesn't seem like half of what would be outstanding.

My husband does seem to remember when he spoke to them back then that if one half comes to an agreement figure and keeps to it and pays it off, the other is then eligible for the rest? Is that right? That doesn't seem fair to me. Isn't that like whoever presses the buzzer first, wins? They took a while to track us down so it was unfair that she got to offer first and we get loaded with paying the bigger chunk.

Now, for the double edged bit, my husband and I have terrible credit but he has an Abbey account, he's been with them for around 15 years. If he doesn't pay up or disputes or whatever, can they close his account, is it likely? If so, we are screwed!

toonfish

you need to speak to them, and arrange a repayment plan. Let them know your situation, and how much you can afford per month and they should accept that.

The amount "seems high" because you have racked up 12 years interest on it I suspect

ctabuk

Hold it - Statute Barred - they cannot pursue a debt dated over 6years and one day - tell them to go and play with themselves

Tootsie_Roll

Two things:
Firstly, the statute of limitations on a mortgage account is 12 years - when was the last written admission of the debt or last repayment, that is the point that starts the clock.

Secondly, all Council of Mortgage Lenders Members (including the Abbey) have agreed not to chase up this type of debt after 6 years have expired so I would say he has a very good chance of not having to pay this back if he uses the letter template from National Debt Line.

Good luck.

silvercar

If it was a joint mortgage both parites would be jointly liable. So chances are Abbey are persuing both parties for the full sum, in the hope that one of them coughs up, or at least accepts liability.

JohnInDebt

ctabuk wrote:

Hold it - Statute Barred - they cannot pursue a debt dated over 6years and one day - tell them to go and play with themselves

I thought for mortgages it was 12 years, maybe someone in the know can confirm.

ctabuk

https://www.icclaw.com/devs/uk/pn/ukpn_015.htm

Tootsie_Roll

JohnInDebt wrote:

I thought for mortgages it was 12 years, maybe someone in the know can confirm.

Please see my post above.

Tootsie_Roll

ctabuk wrote:

https://www.icclaw.com/devs/uk/pn/ukpn_015.htm

Not a relevant article or case study for this post.

olly300

I've found this:
http://www.payplan.com/debt-library/joint-and-several-liability-the-limitation-act-1980.php

and this:
http://www.payplan.com/debt-library/mortgages-mortgage-shortfalls.php
It's 12 years for mortgage debt.

Abbey would have sold the debt on to another company.

This company would add interest, finders fees and other such made up things on to the debt to make it bigger.

What ever arrangement they have come to with the other person they will be trying their luck to see what they can get out of you.

You probably don't have to pay it back because of your circumstances.

If your husband is conducting his current account properly Abbey would have no reason to close it.

ctabuk

I would Still say - go and take a hike - and I do not think for one second that a Judge would allow it to go further. But I have learned something on Statute Law so thanks for that.