Really need help ASAP please

blissfullytea

In June 2001 our house was repossessed with an 11k shortfall.
We heard nothing until 2007 when I made token payments not realising about the Council of Mortgage Lenders six years.
I moved into temp accommodation around that time and had to stop payments. I told them why and gave them an email contact for me.

I heard nothing again until August of this year when a dca have bought it.
I have mental health illness quite severe and on DLA long term.

They have refused that it is outside the six years council of Mortgage Lenders suggests, they have refused to write it off. They won't accept a token payment. Please help .

ellesbellesxxx

I would go to Citizen's Advice Bureau or contact a debt charity (a free one) like Stepchange.

sourcrates

Hi,
It all depends on the dates really, and what the shortfall consisted of, either original capital, or outstanding interest.
A creditor, I`m afraid, has 12 years in which to chase a shortfall of capital, six years if the debt consists of interest, but, they must inform you they are going to recover the shortfall within six years of the repossession.

This point on the exact dates needs clarification, I would ask for a complete breakdown of the outstanding balance.
They are obliged to treat you fairly, whatever your medical condition, if you feel they are not doing so then you must make a written complaint, mortgage complaints fall within the remit of the Financial ombudsman service.


There is a lot of useful info here :
https://www.nationaldebtline.org/EW/factsheets/Pages/11%20EW%20Mortgage%20shortfalls/Default.aspx

blissfullytea

Thank you. Can you please tell me if they can take this back to court and what action they can actually take.

sourcrates

blissfullytea wrote: »

Thank you. Can you please tell me if they can take this back to court and what action they can actually take.

They do not have to pursue this, but its obvious that they are.
In your shoes I would contact National Debt line, use the link in my previous post, they can offer you the best advise, if your only income is DLA, and you are no longer a home owner, it would be pointless them taking legal action, as you simply don't have the money.
You should write to them explaining your situation, include your income/expenditure, so they can see you have no money or assets, I would say you are more a case of cant pay, rather than, wont pay.
Under FCA guidelines they have to treat you fairly, give NDL a ring, they will give you good advice over the phone, and help you with wording your letter, if you are at all unsure.


If you have no joy then after 8 weeks, or there final response, you can escalate this to the FOS, and they will decide weather they are treating you fairly or not.

blissfullytea

Thank you will contact them now

sourcrates

blissfullytea wrote: »

Thank you will contact them now

No problem, good luck with it

[Deleted User]

It might be an idea to get your GP to write a letter on your behalf explaining your heath issues and stress to him this is making things worse. DCA's get nervous when there are health implications, and this could be a way of getting them off your back.