House repossession advice!

edited 30 November -1 at 1:00AM in IVA & DRO
3 replies 1K views
JadevictoriaJadevictoria Forumite
1 Post
edited 30 November -1 at 1:00AM in IVA & DRO
Hello,

I am wondering if anyone can help me with my question…

In 2008 me and my ex partner purchased a brand new flat (first time buyers scheme) from the Wimpy LTD.

We moved in once it was built, we NEVER made one months mortgage payment as he decided to split up with me within 2 weeks of moving in.
I was 12 weeks pregnant at the time, I tried to keep the flat on my own but my wages would not cover it.
He walked away from the property and he went bankrupt.
Looking back I should of done this too but I felt like a failure and knew with a child and low earnings I simply would not afford to pay a big debt.

The house got repossessed after a year and I was left with £61.000 as they didn’t sale the flat for what I paid for it a year before.
I was getting tons of letters and even has someone come out to assess me and they figured I could not afford it.

9 years later and I have got married and moved into my husband's mortgaged home but I will not go on the mortgage as feel there is far too much seeing as I may still owe this debt.

The last few years I have a great credit score, I can get credit cards, store cards.

So my question Is what happened to the large debt?

Could I ever go on my husbands mortgage if we decided to move and buy a bigger property?

I would appreciate any advice on this.

Replies

  • AnotherJoeAnotherJoe Forumite
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    When you say "I was left with £61.000" do you mean you were left with a debt of £61k?
  • sourcratessourcrates Forumite, Board Guide
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    You still have a mortgage shortfall of £61,000, but from what you have said, the creditor has chosen not to chase it as there was no way you could afford to repay it.


    Mortgage shortfall debts go statute barred after 12 years of non payment or written acknowledgement.


    But information only stays on your credit file for 6 years, so your current lenders will have no knowledge of your past misdemeanors.


    The debt still exists, but they are not chasing it, in 3 years it will be statute barred and then gone forever, as long as you don`t acknowledge it or make any payments.
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  • National_DebtlineNational_Debtline Organisation Representatives - Private Messages may not be monitored
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    Hi JadeVictoria and welcome to MSE,


    Mortgage shortfalls are quite complicated and although sourcrates is right about the limitation period, there are other factors to consider as well. It is a total of 12 years to chase you for a mortgage shortfall but that breaks down into 6 years to chase for the interest aspect of the shortfall and 12 years for the capital. (Although you will likely find the majority of this would be capital).

    This 12 year clock starts from when the debt falls due, which would've been when the lender could first take action (which would be after 2-3 missed payments) but this would be restarted every time you made a written acknowledgement and/or payment.


    It may also be possible to raise a dispute about being chased for this debt if the lender didn't contact you within 6 years of the property being sold. However, this is also a very complicated area, and it would be better speaking to one of the free debt charities about the details of your individual situation to clarify your options.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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