Mortgage shortfall debt after repossession

Zulu187

Hi guys, I’m not sure if this is the right forum but I need some advice.

i had 2 mortgages, one with Halifax (£60,000, repossessed in 2011, £25k shortfall)  and the other with Kensington (£100,000, repossessed in 2013, £68k shortfall)

I have not heard from either lender until last month. Moorcroft have been in touch about the Halifax debt and Azurro have bought it off Kensington. I’m really hoping I don’t have to go down the bankruptcy route as I’ve been trying hard to repair my credit score but what are my options with these guys? I don’t really earn a lot, £18,500 annual salary. 

Please any advice would be greatly appreciated 

Thankyou 

mortgagetakingages

Zulu187 said:

Hi guys, I’m not sure if this is the right forum but I need some advice.

i had 2 mortgages, one with Halifax (£60,000, repossessed in 2011, £25k shortfall)  and the other with Kensington (£100,000, repossessed in 2013, £68k shortfall)

I have not heard from either lender until last month. Moorcroft have been in touch about the Halifax debt and Azurro have bought it off Kensington. I’m really hoping I don’t have to go down the bankruptcy route as I’ve been trying hard to repair my credit score but what are my options with these guys? I don’t really earn a lot, £18,500 annual salary. 

Please any advice would be greatly appreciated 

Thankyou 

If you haven't heard anything for over 6 years it sounds like it should be statute barred. 

sourcrates

Hi,

Moved your post to a more appropriate forum.

Limitation period on mortgage shortfall debts is 12 years, not 6, so both still enforcable, however, not many people have 93k tucked in their back pocket, one reason why these type of debts are not chased that hard.

The limitation clock will run right up until the point they take legal action against you, so the choice is yours on what to do, they know the chances of recovering such sums are minimal.

JCS1

mortgagetakingages said:

Zulu187 said:

Hi guys, I’m not sure if this is the right forum but I need some advice.

i had 2 mortgages, one with Halifax (£60,000, repossessed in 2011, £25k shortfall)  and the other with Kensington (£100,000, repossessed in 2013, £68k shortfall)

I have not heard from either lender until last month. Moorcroft have been in touch about the Halifax debt and Azurro have bought it off Kensington. I’m really hoping I don’t have to go down the bankruptcy route as I’ve been trying hard to repair my credit score but what are my options with these guys? I don’t really earn a lot, £18,500 annual salary. 

Please any advice would be greatly appreciated 

Thankyou 

If you haven't heard anything for over 6 years it sounds like it should be statute barred. 

It''s 12 years, not 6, for mortgage shortfalls.

mortgagetakingages

Learnt something today, thanks all. 

Zulu187

@mortgagetakingages Thankyou for that. How do I find out if it is? I was worried because I thought statute barring for mortgages was 12 years? 

Zulu187

@sourcrates Thankyou for the advice. 

So until they take legal action (I’m renting atm so they won’t be able to add a charging order) I shouldn’t acknowledge it? I’m sorry if I sound a little clueless about all this. 

Also, someone told me that they might accept a smaller amount as settlement offer. How low would they typically go as I could borrow some but obviously not a huge amount. Probably £10k at the most 

thankyou

fatbelly

Limitation Act is 12 years for capital (not interest) on secured debt.

But MCOB rules say they should contact you within 6 years.

Have a read of this

https://www.nationaldebtline.org/EW/factsheets/Pages/mortgage-shortfalls/mortgage-debt.aspx

Edit: I've settled mortgage shortfall debts at less than 5p in the £

sourcrates

Its awkward, but I would leave it as long as possible, hopefully the elder of the two debts may go statute barred before they take it further, you are never going to be able to pay off such a sum of money, the alternative to making an arrangement with them, and ending up paying this the rest of your life, is to offer a sum in partial settlement, never start with your highest bid, always start much lower, see how the dice rolls for you.