Mortgage shortfall - Need assistance please

Mrsbrightside

Thank you for the information and taking the time to respond. My understanding is that because it was a mortgage, that it would not be statue barred until 12 years has past. Or is that only if the debt was with the lender? My DH seems to think that since the debt is likely owed to the housing association then it would be six years.

It is not our intention to run from this debt. We are just trying to understand all of our options. If there is a way we can make payments then we would be willing to do so. Unfortunately, on our income, I'm not sure we would be able to pay off that amount in our lifetime! So not sure if that is an option or not.

Mrsbrightside

Does anyone know if contacting the housing association to find out the details of our account would be considered acknowledging the debt?

holly_hobby

danielanthony wrote: »

Debts are statute barred after 6 years, so as long as you don't acknowledge the debt for that length of time it can be written off. So you can either:

Mortgage shortfalls may be lawfully pursued for a period of up to 12 yrs before becoming SB'd (although members of the CML voluntarily chose to adopt the 6 yr clock).

Lawful pursuance of mge interest under any mge shortfall, is SBd at 6 yrs as per LA80.

Hope this helps

Holly

Mrsbrightside

Thank you Holly. Does that mean they may not chase us after 6 years, but would be in their right to do so? Also, would it matter that the debt is with the housing association and not the mortgage lender in regards to the 6 or 12 years?

Just trying to understand all the possible things that could happen. Thanks again!

holly_hobby

Yes, the lender may voluntarily choose not to pursue after the 6 yr anniversary (when any credit ref agency (CRA) registration of debt will also expire), BUT lawfully they (or any assignee if the debt is sold to a 3rd party), may elect to push it right up to the 12 yr statued barred point - regardless of its expiration from your CRA record.

Whom will be lawfully pursuable in your situ, would depend upon several points as noted by Kings, I would stongly advise that you obtain some legal advice regarding this rather than assume one thing over another (CAB also have duty solicitors whom will provide basic and free guidance).

Hope this helps

H xx

Mrsbrightside

Thank you Holly. That is very helpful. I have contacted a debt charity by email and am waiting on a response from them. I shall try to contact the CAB as well.