UK Mortgage shortfall debt, living in Norway

sulksy

Hi all, i'd appreciate it if someone could give me some advice

I currently live in Norway, and have done for close to 4 years. Recently we handed the keys of our UK house back to HSBC as after 3 years of renting it out the fixed rate period was over and we could no longer make up the difference.

It was sold this month leaving us with a shortfall of £43k!! We've already received two letters from the bank demanding payment etc etc. We can't afford to pay this, and couldn't even offer to settle for 5% as we're that skint.

Now i've read quite a lot of forums but some of the advice is quite contradictory or doesn't quite apply to our situation..... so what would people suggest our plan of action should be? And what the consequences of non-payment might be given the following information:

1. We haven't acknowledged the debt.
2. The bank have a correspondence address in the UK only
3. We've been out of the UK for 4 years.
4. Norway isn't in the EU (i'm aware there is some other agreement but don't know the technicalities)

Thanks in advance guys, i'm sure you can help me out!! :T

Tankrizzo_2

Why don't you do the responsible thing and contact HSBC to sort out a payment plan? Plenty of people on the DFW board have cleared larger personal debt than you with a bit of perseverance.

Easier to do this than worry about people looking for you if you return to the UK, surely.

Delree

This is a forum for those wishing to clear their debt not avoid it. Make sure interest isn't being added and make a payment plan, better that than living in self imposed exile all your life. One day you'll have to come back, you may not think so now but one day.

RedTulip

Maybe because its so early and I'm a little grumpy, but I had to re read this a few times. First off, I'm staggered you even mention 'not acknowledging the debt' - its a house! That you took a mortgage out for! That you've been paying for over 4 years and now you 'dont acknowledge' it?! On principle I couldn't for shame say that I didn't acknowledge it.

Secondly do as the others advise, do the decent thing by getting in touch with the bank and sort out a payment plan and pay what you owe.

People on here work so hard to clear debts, but for some reason you think you dont have to?

Heyman_2

I understand where others are coming from with their postings, but the spirit of this forum is one of non-judgement, so I'll try and give you some info.

Look at this link for some information regarding Mortgage Shortfalls following reposession -

http://www.housingrepossessions.co.uk/liability-for-mortgage-shortfalls.html

The main point is that the lender has 12 years from the point at which the shortfall became due in which to issue proceedings to chase down the debt. Make of that what you will with respect to your current situation.

dancingfairy

If you were in Englan you'd need to agree some sort of arrangment with them or consider bankruptcy or hide for a long time which could be pretty stressful.
Unfortunately you should have taken advice before giving back the keys as to the likely rammifications.
I do not know how the arrangement works with respect to Norway though - you could try and get hold of a UK debt charity such as national debtline or CCCS and see what they suggest.
df