Repossession 1994 - Court 2007 - Help

smobile_2

Hi

Any help on the below would be appreciated.

In 1994 due to the collapse of my 1st marriage myself and my exwife got our house voluntary repossessed. Although we had paid a mortgage indemnity guarantee, their was a shortfall of 18724 pounds between the ammount borrowed (28000 pounds) and the resale value of the property (9276 pounds). This debt of 18724 pounds was split evenly with me owing 9388 pounds. I also have it in writing that no interest would be added to the payment providing that I paid regularly and the arrangement was to the building society's satisfaction. This arrangement was that I paid a monthly contribution of 25 pounds with this being reviewed annually.

I have been paying the 25 pounds ever since but have never completed any correspondance from the building society regarding reviewing this position - I guess this could be my downfall.

However, having paid approx. 3187 pounds in the past 10 years I have today received correspondance from a county court and the building society's solicitors that my debt is now 15,537 pounds (I think they're asking for mine and my exwifes debt) and when interest is added at 8% per annum in accordance with section 69 of the County Court Act 1984 I now owe 31024.62!!!

I rang the building society today and spoke to a member of it's staff who suggested that I should remortgage to finance the shortfall.

So I'm currently in a position when I've been paying off this debt on a regular basis but now I'm being asked to repay more than I jointly borrowed!!!

Advice or help on how to proceed would be appreciated please.

firesidemaid

someone may come along soon with a little more knowledge....

but, i would take all the paperwork down to the CAB and let them take a look.

Ian_W

Taking the paperwork into the CAB for advice is the best option IMO as any help on an internet forum like this can only be generalised whereas with the County Court involved you need more specific [to your individual circs] help - a solicitor might be the other option, though I'm not sure you'd get legal aid these days but some do offer a free initial consultation.

Do you have it in writing that the lender agreed to you only being responsible for paying half the debt? Joint mortgage holders are usually "jointly and severally" liable for the debt, in other words if they can't get both of you then one can be held liable for all the money owing. If you do then you might have a better chance of contesting it - if you don't I would think it's going to be much more difficult although I'm sure any Court is going to sympathise with the fact you've been paying an agreed amount over a very long period.

BoL in any case.