Mortgage shortfall since 2014

infinitelove

Hi folks .
  I had mortgage shortfall from Barclays transferred to collection agency  after
home repossessed 2014 with shortfall £30,453. sold to collection agency.who has been writing and texting since 2018,  due to my inexperience, i made first contact with them in 2021 by paying £200, i thought the limitation is completed after 6 years, to this they said its12 years, also they first told me my loan is not unsecured as it was secured when i took it, then the  following week they sent another letter that my loan is now unsecured. i know it has been unsecured since the day property was sold.
So far i have only paid £553, up till January 2023. Then to hasten everything i put forward Full&Final  offer of £5000 to collection agency  which they replied is small and i should send various documents to show why my offer is so low, while still thinking' why should i be asked for bank statements , pay slip etc, 'the following week to my amazement, they wrote me that because i have not replied on time by sending the documents requested, they cannot uphold my claim and so the case is closed. so since them i stopped communications with them.
Now i want to repeat the F&F offer, because i want to get out of this asap ,should i use Step change instead of doing the offer by myself and increase to £7000  that's the last i can afford or keep it at £5000. they give me headaches with their weekly texts.  i am are retired age 68 since few months ago, please advise anyone.

infinitelove

I forgot to mention, when i requested full and final offer, they suddenly add £8,848 to the loan balance in their first reply to me!!!    Are collectors supposed to add interest to shortfall please?  let me know and what should i do please?

jlfrs01

So part of what you've been told is correct - statute barring on mortgages is 12 years on the capital and 6 years on the interest owed. However, the debt has been acknowledged and payments made and my understanding is that these would be set against the capital. In any event, the clock would have been reset to the 6 and 12 years respectively.
We are talking about a large figure here and as Mortgage arrears is a complex area you may be wise to seek advice from the CAB or National Debt Line who have a factsheet here:

https://www.nationaldebtline.org/fact-sheet-library/mortgage-shortfalls-ew/

sourcrates

Mortgage shortfall debts, are bought for pennies in the pound, and they usually tend to be quite large amounts of money, and as they are bought cheap, they can afford to take settlement offers on them.

If that is the way you want to go, then National debtline provide a good template letter on their website, these things should always be done in writing only, and a written copy of any agreement must be obtained before you part with any money.

But would this leave you with little or no money?, as these debts tend to be quite high in value, they know full well its a chance they take getting any kind of payment, and should payment not be affordable, then eventual write offs are not unherad of.

infinitelove

Thank you both i really appreciate. and i got the message. Elderbridge have another 11 years to keep their clock rolling then if they won't back down,

infinitelove

Also anyone have an idea why i never got CCJ for this 2014 default debt till now, the repossession order was made in court that year as i didn't attend the hearing, could it be they have issued CCJ earlier in years back without me knowing because i never bother to check my credit report, or collector can still issue it at stage later?. 
 Another  similar question please if original lender has not taken you to court at anytime , is collector empowered do?

sourcrates

A money judgement is normally added to a re-possession order, if you have a mortgage shortfall, but not always.

The owner of the shortfall debt can take action through the courts should they see fit, at their discretion.

They have 12 years (capital debt) 6 years (interest debt) to do so.

stymied

Is there any way now that the OP could get the interest removed due to it having been statute barred?

infinitelove

Hi Sourcrates, Thanks for your enlightenment to my question, but as the owner of the shortfall has sold it to collection agent, i want to know if the agent has power to take court action like the original owner.  

sourcrates

infinitelove said:

Hi Sourcrates, Thanks for your enlightenment to my question, but as the owner of the shortfall has sold it to collection agent, i want to know if the agent has power to take court action like the original owner.  

That`s why I referred too the debts owner, whoever owns it can take legal action, on the sale of a debt all rights and privileges pass to the new owner automatically.

If the debt has just been assigned to a collector, that collector cannot enforce any rights through the courts for the simple reason they do not own the debt.

sourcrates

stymied said:

Is there any way now that the OP could get the interest removed due to it having been statute barred?

Its not statute barred, legal action has been taken, so the limitation act does not apply.

The judgement being unenforceable is a separate matter altogether.

There is no automatic right to an interest refund under any circumstances.