Reposessed 7 yrs ago

Kev20764

Hi all
I am new to these boards so please go easy on me.I was advised by someone to ask advice on here so here we go.

Due to a relationship break up seven years ago my house was reposessed.My partner at the time had left us with arrears on the mortgage(which she told me was getting paid).When we split and i found out,i worked all the hours i could,sometimes 19 hrs a day to clear it, which i managed.However my (Endowment)mortgage at the time was £400 per month.Which i thought was very steep and couldnt afford it on my own.Stupidly i decided to let them reposess.I never have hidden where i have been for the past seven years.
The problem is i have recently received a letter saying that i owe a shortfall of £16.000.I have sought advice from the wefare rights beurau who have told me that after 5-6 years the debt should be written off.
Could you tell me if this is true??and if so what steps to take.
I have written to the dcc and told them that i am not refusing to pay,however i am refusing to pay the full amount as it was a joint mortgage and i think they should chase her for the other half.

This is only part of the advice i need but thought it was getting a bit long winded and i dont want to bore you,so i will start from here.
As much advice as possible would be much appreciated.
Thanks in advance.
Kev

Pobby

Not sure if the 6year rule holds up with mortgage shortfalls,would have thought so.My experience is that lenders will be glad to settle for a very small amount of the which is asked.I know of folk who were asked for much more than 16k who eneded up paying a couple of grand!

Kev20764

I have been told if i can come up with £8.000 one off they may consider it.Obviously i havent got 8 grand to pay.Offered them monthly payments but was told,to do it that way it would be for the full 16 grand.
I am considering bankruptcy at the moment but need to know as my wife and i am on a decent wage would i be eligible.
Thanks
Kev

rog2

As far as I am aware, debts relating to property do not become 'statute barred' for 12 years :mad: I really do hope that I'm wrong.
I would not suggest entering into ANY repayment programme until you have taken professional advice - you can try talking to CCCS or PAYPLAN, who are Debt Counselling charities and will give you free and professional advice.
Please explore ALL other options before choosing Bankruptcy. If you are on, as you say, a decent wage then an IPO would probably be imposed on any disposable income and you would be paying this for 3 years.

Optimist

I'm afraid the person at the welfare rights dept is incorrect. The limitation period on mortgage shortfall debts are 12 years (Section 20 of the Limitation Act 1980) I would suggest a visit to Citizens advice before you do anything else.

misspoppy

Hi

Sorry to hear your news out of the blue.I would check it out with one of the agencies suggested as I am sure there was some thing in the news changing this rediculous 12 year rule. Best to
make sure you have the most up to date advice.

Good luck

CLAPTON

It is indeed true that the statute of limitations applied to property is 12 years. However, all the major lenders have voluntarily agreed they would not pursue cases over 6 years.

However, i'm unclear whether your written communication offering to pay may count as an acknowledge of the debt.

I would suggest you stop writing to anyone until you have sort more advice. I would suggest nationdebtline, payplan and CCCS.

and i would suggest you report back here what they say to get more feedback.

Subject to what they suggest, I think you are better off dealing with the original lender and reminding them that they have a code of practiced that says they wont pursue after six years.



If you are anyway struggling with debt you may wish to post your SOA here and see whether people here can help.

Kev20764

Hi again
Thanks for all you replys.The wefare rights and CAB are conjoined in my area.I will take your advice and seek professional advice before going any further.I will also come here again once i have received it.
A couple more questions:
I have printed off a letter template about the 6 year rule but havent sent it yet.Do you think it would be worth sending it and see what happens?
As i said this is a joint shortfall so if they think i am not going to pay or at least fight to pay 50% of the full amount will they chase the ex for it?
What is CCCS and IPO ?

Regards.
Kev