Mortgage shortfall-Ge Money/Capital recoveries

johnsmith2011

Hi,
I was wondering if you could help me please?
I bought an apartment (stupidly i know) in 2006 with my ex partner, after approximately a year things started to get very difficult and i moved out, i paid half the mortgage for approximately 6 month. She requested that i sign everything over to her which i was willing to do however she changed her mind and stopped paying the mortgage.
I got note that the house was getting repossessed however there was nothing i could do.
I've now moved on and have a daughter with my partner. However 6 weeks ago i received a letter from Capital recoveries stating i owed them nearly £75,000 in mortgage shortfall. Obviously i was very shocked and surprised to recieve such a letter, i constantly checked my credit report and i've been trying to put things right. It states that the current balance is satisfied on my credit report, it's also not recorded as a repossession or CCJ.
When i phoned capital recoveries they said because its joint liability they will split it and the lowest settlement is £28,000 but i have no where near that amount and never will have.
I'm hoping to buy a house with my new partner (wishful i know) however my credit over the last couple of years has been a lot better, i currently have a score of 711.
Does anyone know what i can do? They said i could fill out an expenditure form to see what my circumstances are and what i could afford to pay but i don't want to do that. I don't see how an apartment for £130,000 could lose £75,000 although i do know there not worth much.
Are GE Money and Capital recoveries the same company?
Any help would be much appreciated.

Thrugelmir

johnsmith2011 wrote: »

I don't see how an apartment for £130,000 could lose £75,000 although i do know there not worth much.
Are GE Money and Capital recoveries the same company?
Any help would be much appreciated.

The debt would continue to increase with unpaid interest every month.

Did you attend the original repossession hearing ?

johnsmith2011

No i didn't go, to be honest didn't know when it was and a few years ago i thought this would just go away and hide.
Really i want to know how i can settle it, i've seen other examples where people can settle for small sums.

Thrugelmir

Suggest that you co-operate. Now that they've tracked you down.
As they can force you to disclose the information in court if you don't comply mutually.

i've seen other examples where people can settle for small sums

Lenders often do, at the point of repossession. As the cost of recovering the full amount over an extended period is uneconomical. GE would have sold the debt to a collector. No doubt they've incurred costs in tracking you down. Something they are entitled to recover.

johnsmith2011

Thanks for that, i have co-operated, i've gave them my new address.
Does that mean they've sold the debt to capital recoveries as they are suggesting GE would have to make decisions on settlements?

Thrugelmir

johnsmith2011 wrote: »

Thanks for that, i have co-operated, i've gave them my new address.
Does that mean they've sold the debt to capital recoveries as they are suggesting GE would have to make decisions on settlements?

GE is a global financial organisation. So highly possible they have a Capital Recovery division. Hence the referall on any settlement.

Do you have a lump sum available to offer them?

SouthCoast

Information on Mortgage Shortfalls can be found here:

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

johnsmith2011

Thanks for that Southcoast, according to that if the sale of your home covers the mortgage or if you clear any shortfall it should be noted as satisfied. I haven't paid it however it states satisfied.....?