Mortgage shortfall after 12 years

Gracey23

Hi. Does anyone know about the Limitations Act that says a creditor cannot chase payments on a mortgage shortfall after 12 years? I've come across it today but not sure how it works. My ex and I are still paying off a mortgage shortfall ( small amounts ) and it will be 12 years in March next year but we are getting no where.  Any ideas how we can write this off? 
Thank you

la531983

https://www.payplan.com/debt-info/debt-and-your-home/mortgage-shortfalls/

The above suggests they have 12 years to actually chase you to start payments, given you are actively servicing the debt now, this wont apply.

ManyWays

Do you have other problem debts?
Could you afford to pay more to this - or make a settlement offer to it?

sourcrates

If you have been paying the debt, then the limitation act will not apply, there has to be 12 years without payment or written acknowledgement for a mortgage (capital) shortfall debt, or 6 years (interest) to be statute barred.

If its unaffordable to you, then just tell your creditor, these type of debts tend to be quite a sum of money, and don't always get chased that rigorously, especially if you can`t afford to make payment towards it, sometimes the creditor will just agree you can`t afford it, and stop collection of it, it depends on your circumstances.

Gracey23

Thank you to both people who responded it's appreciated. No we have been paying what we can ( as separate financial entities ) for 11 years. We submit our budget every year and like everyone else are just getting by with no savings etc. Not in a position to make an offer unfortunately however I did work out how much we would both end up paying in total until we retire if we carried on with the same amount we are paying them now.  I had an idea to beg from as many family members as I can to gather this amount and offer it to them as it's likely all they will be getting in the long term.  IVA's and Bankruptcy aren't an option unfortunately as employers and private landlords get scared off.   Does this sound silly? 

sourcrates

This debt is clearly unaffordable to you both, struggling to pay something that you really cannot afford, makes no sense, and is no use to you as a long term strategy, you need to form a united front between you, and agree on some decisive action.

Write to the lender, stating you have been making token payments to date, but now, due to your circumstances, this amount is no longer affordable, and as the current payment will never repay the debt that is owed, we ask that you make a commercial decision and consider no longer pursuing this account, with a view to writing the debt off completely.

That would be the sensible approach to this.

Sncjw

What's a mortgage shortfall if you don't mind.me asking? 

enthusiasticsaver

Sncjw said:

What's a mortgage shortfall if you don't mind.me asking? 

Normally it is a shortfall between mortgage and selling price of property and often found with repossessions or properties in negative equity. I don’t know if these are the circumstances the OP is in though. 

I agree you should write and ask for it to be written off. 

Floss

By the age of it, I would guess it was a gap between the mortgage capital balance and the endowment maturity value.

enthusiasticsaver

Floss said:

By the age of it, I would guess it was a gap between the mortgage capital balance and the endowment maturity value.

If that is the case the OP will still be living in it and the property held as security so more problematic. 

WYSPECIAL

Floss said:

By the age of it, I would guess it was a gap between the mortgage capital balance and the endowment maturity value.

OP mentions debt is with their ex so doubt they are still living there.  

Its more likely to be the shortfall from the sale of a repossession.

A lot of lenders chase borrowers to try to recoup any shortfall. Hopefully given how long they have been paying and the fact they will probably never clear it they will now get it written off.