Mortgage debt post bankruptcy (discharged)

Buildit

Sorry to add another addition... I've checked on my credit report (noddle in this instance) and the mortgage lender have just been marking the payment as late every month for over 3 years, they've not registered a default at all... surely this is not right and purposely trying to prevent me getting any credit ever?

fermi

Correct. If the property has been repossessed, then it is very wrong not to record a default.

Buildit

Hi Fermi,

Indeed it has been repossessed - I actually sent them the keys back and 9 months later they repossessed it... I also had it sold to an investor who wanted to buy it for more than they sold it for but they wouldn't release the property... what a waste eh!

I was so worried about fighting these people but your actually making it A LOT easier with your advice, can't thank you enough

fermi

https://forums.moneysavingexpert.com/discussion/3172602

Consequently, a lender should file a default no later than six months after the date of a successful court application to proceed with possession unless

• the customer has made reasonable and agreed arrangements to repay,
• the lender can justify not filing a default on an exceptional basis. For example, the lender is fully informed of the circumstances and knows that payments will start again, or
• the loan has been included in a bankruptcy in which case the default should be filed in accordance with the guidance in paragraphs 47 – 48.

So even in an extreme case, where there is no bankruptcy, the lender should report the default within 6 months of the repossession.

But as there is the bankruptcy here, 47-48 applies, so...

a lender should backdate the default filed to the date of the bankruptcy or IVA if the customer requests this.

Depending on how you read that.

So not recording a default at all, but just a string of late payments, is NEVER an option the lender has once the property is repossessed and covered by a bankruptcy. No matter what way you look at it.

Buildit

Hi guys... Just a quick update.. Lloyds who were the CC. Company quickly removed the details from the report which is brilliant news ! The mortgage still on there at tHe moment and no correspondence which isn't a surprise! This'll be the nightmare one I can see it now! Fight on!

Buildit

Another update on this.... the 28 days is drawing ever closer and I've received NOTHING from the mortgage company - in preperation for the lack of response, shall I prepare my complaint to the necessary people?

Thanks for the ongoing help (especially Fermi!)