Mortgage Shortfall

bugar

Hi

Not sure if this is the correct forum so apologies if not, but I hope someone will be able to help with this one.

So my house was repossessed and sold in March 2009, there was a mortgage on it from Northern Rock (the old 125% one). The sale covered the mortgage and the associated unsecured loan. However there was also a Firstplus second charge on the house and there was a little left over which was paid to them.

Now my situation at the time was that I'd been booted out of the family home in June 2007 and although I continued to pay for a while it became obvious that I couldn't pay all of this and live somewhere else and my ex partner was not interested in moving (living rent free as she was). So I stopped paying in Sept 2007 on both NR and Firstplus. Unfortunately I also don't have much of the documentation as I said I was kicked out of the house.

So now it's 6 years later (almost to the day) since the sale. I've heard nothing from Firstplus about the shortfall my credit rating is getting much better and I'm hoping to get a mortgage in about 18 months or so when my rating will be clear of defaults and CCJ's etc. Oddly Firstplus loan only showed on my credit report for a few years and always showed as satisfied, which was weird.

My question basically is, I see that there are CML and FSA guidelines that say after a lender will not pursue a shortfall after 6 years of the sale, although the limitation is 12 years. Is this something that Firstplus would adhere to? I know they are part of Barclay's and Barclays is a member of the CML.

I've not contacted Firstplus and don't plan to, but as I'm really close to 6 years since the sale I'd just like some advise, my luck means I'll probably get a letter from them tomorrow

Anyway any information or advise is greatly appreciated.

Regards

Bugar

Thrugelmir

Why was the unsecured loan owed to NRAM discharged ahead of the secured loan to Firstplus. As Firstplus held the 2nd charge on the property which ranked ahead of any unsecured debts.

bugar

Thrugelmir wrote: »

Why was the unsecured loan owed to NRAM discharged ahead of the secured loan to Firstplus. As Firstplus held the 2nd charge on the property which ranked ahead of any unsecured debts.

To be honest not a clue. NR dealt with repossession and dividing up the money.

Thrugelmir

bugar wrote: »

To be honest not a clue. NR dealt with repossession and dividing up the money.

NR's solicitor would have handled the money division and negotiated the release of the charges.

rizla_king

And possibly mishandled it to to unfairly benefit their client if that is true.

silvercar

Thrugelmir wrote: »

Why was the unsecured loan owed to NRAM discharged ahead of the secured loan to Firstplus. As Firstplus held the 2nd charge on the property which ranked ahead of any unsecured debts.

That was my thought.

It may be that the secured loan has a term in it that says they hold the charge over the property as security for any loan that their company holds with the borrower. So effectively securing the unsecured loan as part of the mortgage conditions. Which is one of the reasons that they jump up the interest rate if you clear the NRAM mortgage but not the "together" accompanying unsecured loan.