Time limit for mortgage debt

smitchy73

Apologies firstly if this isn't the correct thread.

Can anyone tell me if there is a time limit from when banks can chase for mortgage debt?

Thrugelmir

I believe mortgage shortfalls to be 12 years.

Trollfever

And twenty years in Scotland.

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

Senior_Paper_Monitor

.... but I think I'm right in saying that if formal claim has been made before any statute of limitation (i.e a time limt for a claim) applies then 'second bite' applies and they can chase for ever ?

Certainly does in many/most such issues - but I would be happy to be corrected on this one.

smitchy73

Thanks guys, I checked some more, found an item on the main site and got on to the NDL site, found some interesting stuff in regards to this. Actually found that for me it's very helpful, basically the banks signed up to the Council of Mortgage Lenders and because they haven't contacted me about the shortfall within 6 years they shouldn't be doing so now. They signed up to this in Feb 2000 which was before the voluntarily repossession, i've been paying back a loan with them for over 7 years which was defaulted at the same time and never at anytime have they said anything about the mortgage shortfall this whole time since the house was handed to them.

Thanks again for your help.

Thrugelmir

Senior_Paper_Monitor wrote: »

.... but I think I'm right in saying that if formal claim has been made before any statute of limitation (i.e a time limt for a claim) applies then 'second bite' applies and they can chase for ever ?

Certainly does in many/most such issues - but I would be happy to be corrected on this one.

I think this is the case if a CCJ is issued and the debtor goes underground. Only to re-emerge some years later.

Dave_the_Ginger_Cat

See http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm28384.htm

If there has been any acknowledgement of the debt in this time, which includes contact or payment, then this restarts the clock

smitchy73

Yeah basically over ten years ago I handed in the keys to my property, I believe it was sold at auction, although was never told of anything by the bank after I handed the keys in, I also defaulted on a loan at the same time. About two years or so later then came after me for the loan, which I have been paying off since but not a note or a phone call in regards to the mortgage short fall, so I'm ready for them with this information. Very scary stuff, because basically for the last 7-8 years they've known where I was and I get regular communication and they send me statements for the payments I make against the loan, but never a document, phone call or letter in regards to the mortgage shortfall, and as far as I'm aware they never took out a decree in the Sheriff Court either.

Thrugelmir

Who was your lender?

smitchy73

RBS, this has all kicked off after a succesful PPI reclaim on the loan that was in arrears and four other loans before it. All I was trying to find out was if I still owed anything on the loan, and I end up with this.

Thrugelmir

smitchy73 wrote: »

RBS, this has all kicked off after a succesful PPI reclaim on the loan that was in arrears and four other loans before it. All I was trying to find out was if I still owed anything on the loan, and I end up with this.

What have RBS said regarding the mortgage shortfall?