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Handed keys back still in debt

Debtnervous
Debtnervous Posts: 2 Newbie
in House buying, renting & selling
When the world economy went wrong and people couldn’t pay their mortgage I handed my keys back to the mortgage company. I knew at the time that I would have an outstanding mortgage to pay back. I have not heard from the mortgage company for a couple of years and on clear score the mortgage debt shows as £00000. Does that mean they have cancelled the debt? I don’t want to contact them but how can I know for sure they won’t come after me?

Comments

  • RelievedSheff
    RelievedSheff Posts: 12,691 Forumite
    10,000 Posts Sixth Anniversary Name Dropper Photogenic
    The only way you will know for sure is to contact the mortgage company.

    If you owe them money then you really should pay it back whether you want to or not.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Certainly sounds like it, yes.

    Remember, they have six years since their last communication with you before any debt times out.
  • KatrinaWaves
    KatrinaWaves Posts: 2,944 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Did you give them your forwarding address? Up to date?

    £0 balance could be written off. It could meanthey managed to sell and regain enough money. It could mean passed to a debt collection agency.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    KatrinaWaves wrote: »
    It could mean they managed to sell and regain enough money.
    If so, it's likely they have a surplus waiting to hand back to the OP.
  • kingstreet
    kingstreet Posts: 39,349 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    AdrianC wrote: »
    Certainly sounds like it, yes.

    Remember, they have six years since their last communication with you before any debt times out.
    Isn't it twelve years for recovery of previously secured debt. AFAIK it doesn't follow old CCA rules.

    https://england.shelter.org.uk/housing_advice/repossession/mortgage_shortfall_debts_after_repossession

    Looks like a bit of both. CML/UKF expects lenders to start action before 6 years is up but there are 12 years to take legal action.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    The mortgage company may have sold the debt on so it may not be recorded as mortgage debt anymore?
  • Debtnervous
    Debtnervous Posts: 2 Newbie
    The mortgage company did sell the house but as they wanted it done quickly they took a stupid offer so £20,000 still left for me. I am now single and have no money.
    I gave them my updated address but not heard from them or any debt collectors. I don’t know if I can move on with my life but to scared to contact them to check if it has been wiped out.
  • Mutton_Geoff
    Mutton_Geoff Posts: 4,045 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Debtnervous wrote: »
    When the world economy went wrong and people couldn’t pay their mortgage


    I'm not sure what you're referring to and why the global economy affects "street level" ability to pay one's mortgage since the last big crash was 11 years ago but mortgage interest rates fell since then.


    Anyhow, it will only affect you if you try to borrow. How is your credit rating on something like Credit Karma (free site)?
    Signature on holiday for two weeks
  • MovingForwards
    MovingForwards Posts: 17,166 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    It's 12 years they have to pursue you for any outstanding money.

    What year did you hand the keys back and when were you advised of the sale / mortgage shortfall?
    Mortgage started 2020, aiming to clear 31/12/2029.
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