Mortgage administration error

Bebbers_Vixen

17 years ago my boyfriend's parents remortgaged their property. Although they set up the direct debit mandate, the payment was not taken out. My boyfriend's father said "just wait for them to contact us, it's their mistake", but 17 years on, my boyfriend's parents have never made a repayment and never been contacted by the mortgage lenders.

It seems it's an administration error on the lenders part, but I'm wondering where my boyfriend's parents stand from a legal point of view. With some debts, if they are not recovered within ten years, they're written off. Is there some form of legislation written regarding mortgages too? Naturally, my boyfriend's parents have not contacted the lenders as after 17 years it seems to have been totally forgotten.

mountainchrisriver

Are you sure?! 17 years without paying anything?!

dunstonh

Something doesnt sound right there. Without a payment, they would have gone into arrears and appeared on out of order reports. They would have received annual statements. There is something more to this than we are aware of.

Dan_Collins_2

Never heard of that. i would say (remembering that 17 years ago I was at school playing conkers!) that they have entered into to a contract to repay a loan, thats what mortgage means, a promise to repay so they have to take some blame!

If they come knocking I imagine they will have to be realistic but I would check DD rules if they existed!?

Bebbers_Vixen

Seriously, nothing! No letters statements, nothing! They never chased it up at first because they thought the lender would get in touch, but they never did. Now they haven't chased it up because of the time that's lapsed. It's as though the entire file has disappeared. Obviously, my boyfriend's parents don't have the deeds to the property and now they're stuck there because they're too scared to alert the lender of the fact they've never actually made a payment.

Dan_Collins_2

The deeds will be with the lenders, however they can see copies and get copies from the land registry, they will be able to see if a charge has been entered on the property, if not then happy days! Get a fresh set of deeds and flog it quick LOL

toonfish

Dan_Collins wrote: »

The deeds will be with the lenders, however they can see copies and get copies from the land registry, they will be able to see if a charge has been entered on the property, if not then happy days! Get a fresh set of deeds and flog it quick LOL

absolutely!

regularsaver1

Thats strange not to get a statement or anything

but i think its really odd for someone to think, oh its their mistake, let them contact us

Scott

Not unheard of in the industry, just obviously not advertised. As previous posters have said, check with the Land Registry.

Mr_helpful

I think they might get away with claiming the property through adverse possession which means you have to have occupied the property for at least 12 yrs. They could seek legal advice on this