Mortgage Shortfall

Thrugelmir

RenovationMan wrote: »

The moral of the story is that you shouldn't hide from your obligations because 12 years is an awful long time to hide.

I believe the FSA recommend a 6 year time frame to mortgage lenders. Though whether this applies if people attempt to disappear off the radar to avoid detection I'm unsure.

GMS

I thought the 6 year rule was a voluntary agreement between lenders who are part of the Council of Mortgage Lenders (CML)

Legally it is 12 years as far as I know. I am sure somebody will be along to confirm or correct who has better knowledge on the subject.

RenovationMan

http://www.payplan.com/debt-library/joint-and-several-liability-the-limitation-act-1980.php

"Mortgage shortfalls
Your mortgage lender may begin chasing you for a mortgage shortfall, which was the result of repossession. The time limit is slightly different for the mortgage lenders as they have 12 years before the debt becomes Statue Barred. "

sammie28

We are not trying to hide from this, hence asking for advice on the best way to proceed. My husband is leaning towards just going bankrupt cause he doesn't want this to come back at him years down the line. I have been thinking alot about this and was wondering- do you think he should contact the company and find out if they intend to persue the debt? I am just thinking that there is no point in going straight for the BR incase they have written off the debt. Unlikely i know! It is showing on his Equifax report as Default and balance now £121,000. No ccj from the mortage but 3 others ones from debts he couldn't pay while losing the house. (£2000 ish) If he rings them and asks about the shortfall and explains there is no possible way he can pay it and tells them he will have to go BR, Is there any chance they will just write it off? I am just very worried about it affecting my credit file as he is on my credit file as a financial associate, due to living at the same address the mortgage was on. Also if he does go for the BR option, will it be the full 6 years before we could get a joint mortgage? And would the banks class him as too old by then as he will be 46? Sorry for all the questions and thanks for all your help.

Thrugelmir

sammie28 wrote: »

We are not trying to hide from this,

No-one suggests you are. Often contact is lost for genuine reasons.

Factoring in your comments in your previous post. Maybe your better option would be to continue to rent for the foreseeable future. While letting historic issues fade away.

sammie28

Thrugelmir - Your probably right. Don't think i could get a mortgage on my wage alone anyway. I will fill my husband in with all the info and see what he wants to do. Thanks for your input.

Thrugelmir

sammie28 wrote: »

Thrugelmir - Your probably right. Don't think i could get a mortgage on my wage alone anyway. I will fill my husband in with all the info and see what he wants to do. Thanks for your input.

Wish you well for the future.

Even if house purchase seems a distant possibility now. Keep savings. As its dreams that the supply necessary motivation.