Old mortgage debt

Alexsmummysam

I've just received a letter stating that they have sold my mortgage arrears debt to another company. They have not contacted me for about 5 years. I received a letter 5 years ago that I stupidly ignored. The debt is from a previous relationship. If I acknowledge the letter and fill in the outgoings and income sheet that they have sent me, will I need to include my new partners wage etc on the former? Even with his wage we only just break even each month so wouldn't be able to afford to pay them anything anyway. My ex is on benefits so would he be expected to pay anything towards it?

sourcrates

Hi,

You do not have to do anything.

Only a court can demand that information from you, now you are aware of that, all you need to do is give them your details, it does not involve your new partner at all.

Never offer any information that's not relevant, never offer to pay more than you can afford.

How long ago was the last payment to the mortgage ?

Alexsmummysam

The last payment was about 9 or 10 years ago. Do I not need to fill in the form at all then?

sourcrates

Alexsmummysam wrote: »

The last payment was about 9 or 10 years ago. Do I not need to fill in the form at all then?

It will be statute barred after 12 years, i would be tempted to
...........s t r e c h...........things out for as long as possible, of course if you want to repay it, fill in the form, just your details, and make it show whatever you can afford to pay.

But just remember that may be construd as acknowledgement of the debt, thus scuppering any future statute barred status.

Your choice in the end.

National_Debtline

Hi

As sourcrates says, if 12 years pass with no payment or written acknowledgement the mortgage shortfall debt will become statute barred. That means it would be unenforceable and they couldn’t get the money from you.

At this point you’re not obliged to provide any information, but there’s the risk that they could take court action until the 12 year point passes.

If the mortgage was in joint names you and your ex-partner are jointly and severally liable for the mortgage shortfall, which means either one of you can be pursued for the whole amount. In practice creditors tend to go after the person they think will be easier to get payments from, so probably you if you’re the only one working.

Do you think the property was sold for a reasonable price at the time and have you ever received a breakdown of the debt to check whether it seems correct?

James
@natdebtline

Alexsmummysam

I've never seen any paperwork. We moved out, and I stupidly let the ex deal with it. I haven't had anything on paper other than the letter 5 years ago.

sourcrates

Alexsmummysam wrote: »

I've never seen any paperwork. We moved out, and I stupidly let the ex deal with it. I haven't had anything on paper other than the letter 5 years ago.

If this is the first letter in five years, there will be a few more to come yet, under civil procedure rules they have to tell you they will be taking you to court, so if you can get over the 12 year line, all well and good, but if you can't, then sort a payment plan.

For now I'd just wait and see what happens.

Do you know if your ex has paid anything towards this debt ?