Mortgage capital 6/12 years and reassignment

sapamm

Hi
I hope someone will have information that can clarify my situation. I have done a lot of research but not uncovered the following question:

I had a mortgage on which I defaulted in 2006 and was repossessed in Sept 2007 leaving a roughly 35k shortfall. I have not heard from the bank since 2009 when I was simply denying the debt (in denial) about the whole thing. Thus I am about seven years away from the situation. There has been no CCJ and I have not changed address.

I understand that the banks will usually not chase a mortgage capital shortfall after six years although they are entitled to enforce up to 12 years.

My question is, if a debt company buy the debt and have it reassigned are they entitled to the 12 year rule and obtain a CCJ up to 12 years from default/acknowledgement of deb? Or have courts ruled that the six year statutory bar holds when a debt has been voluntarily bought and reassigned. Ie, cashing in on the 12 year rule might be considered invalid if the original lending bank normally withdraws pursuit after six years?

I am sure there will be many others in the same situation whose mortgage finances went underwater during 2007-10 and who will be wondering if the six or 12 year rule applies to debt shark companies who may still try to cash in for a good few years yet.

Vikipollard

https://www.nationaldebtline.org/EW/factsheets/Pages/11%20EW%20Mortgage%20shortfalls/Default.aspx

HTH

National_Debtline

Hi Sapamm,


If you have wrote to a creditor or made a payment then you will restart the limitations clock but the buying/ selling of debts between debt collectors, has no bearing on the limitations period. So if you have not made any payments since 2006 then that could be the start of your limitation period. However, any payments or written acknowledgements sent since then would restart the clock. I should also mention that if the mortgage was in joint names that does muddy the waters even more.


Whilst the start of the limitations clock can vary in some cases it is normally starts from when the lender can first take action, which is when the first 2-3 payments are missed on the mortgage. The lender has 6 years to chase you for the interest and 12 years to chase for the capital. Normally the lender will clear the interest with the property sale and leave the capital owing as they have longer to chase you for this. Vikipollard has put the link to our factsheet above which is quite helpful, good luck.


Laura
@natdebtline