In distress - mortgage shortfall

GoodEgg22

Thank you in advance for reading. I’ve been most distressed by this.

I’ve received a letter from Hessonite stating I owe just under £30k for a mortgage shortfall.

My ex husband decided to go bankrupt in 2006 and all assets (including the house with Northern Rock mortgage) was taken into the insolvency estate. We were made homeless and started to rent. I am not sure when the insolvency for dissolved (probably 2009). I did not go bankrupt as he advised me not to. 

I received a letter around three years later which stated I owed around £60k. I honestly cannot remember (a lot has happened since) but I think I did respond stating I had no income and would have to declare myself bankrupt if they pursued. They did not respond. This was probably about 15 years ago but likely longer.

I have not received any correspondence since. I am unsure whether to respond to the letter with the templates from the debtline site asking about the specifics of the debt or stating I believe it is statute barred. I don’t know if it is statute barred as I am unaware if any CCJ’s were made against me - nothing on credit file and I get credit easily - but based on the timeline of 12 years I feel it must be. However I also wonder if it’s still within the 12 years as it looks like the interest has probably been deducted as the debt being sought is now approximately halved and so likely to just be the capital.

To make things more complicated there is no evidence that the house was ever sold. The last dates in zoopla and 192 show the year we bought the property as the last sale (2003).

The letter is threatening field agents, employing a solicitor and charging me and potentially seeking a court judgement or bankruptcy.

I don’t know whether to ignore it or be proactive with these letters. It’s been a shocking year for me and this has come as a huge blow.

All advice is most appreciated.

MSE_ForumTeam5

We've moved this to the part of the forum best placed to help with this kind of question 

GrumpyDil

It is likely that the house has been sold but as it was a repossession the data isn't published (we purchased a repossession in 2013 and our purchase doesn't show up on zoopla etc). 

Brie

If I google Hessonite I'm not coming up with anything obvious other than gemstones.  Is this actually the name of a debt agency of some sort?  It's not one I've ever heard of.

Ok - but working on the assumption that this letter is from some debt collector of some sort I would not ring them but write to whatever address they have given on their letter and send them a prove it letter.  You can find this on one of the top stickies of the debt free wannabee board.   They will need to respond with adequate proof that you owe this debt and that you need to pay it to them rather than the original bank.

Personally I suspect it is just a fishing expedition where some small firm has bought a load of old debts for tuppence and are seeing how many nibbles they can get from people.  Doesn't take too many to cover their costs and make them a nice tidy profit.  

There won't be anything on your credit file due to the age of the debt.  But also due to the age it may be statute barred.  But don't get into any of that with them just ask them to prove you owe something and need to pay to them.  

Don't ring them, don't text, don't email - don't give them any easy, cheap way to contact you.  Make them work hard and likely they may go away.

Grumpelstiltskin

OK Start here.

Search for land and property information - GOV.UK

Download the deeds for £3 and see what they say.

RAS

Even a mortgage shortfall becomes unenforceable in court after some years. It is really important that you do not communicate with the people who wrote to you until you are clear whether this might be secured or unsecured debt. That can depend on whether you or your ex-husband signed certain documents, based on my recall of advice on the bankruptcy forum here in 2007-8.

I'd add that you may be very close to the date at which this debt becomes unenforceable and if you communicate now they have more options than if you refrain for a few months. 

What's your situation now? Home owner, renter, employed on a high salary or on benefits?

fatbelly

There's a six-year rule and a 12-year rule. and a 6-year FCA rule

https://nationaldebtline.org/get-information/guides/mortgage-shortfalls-ew/

I agree with Brie that the safe option is an ordinary prove-it. See what comes back. Don't be scared by their empty threats. And Grump gives a link to what may be useful info (you want the title register)

If they did get a ccj, it has to be enforced within 6 years

sourcrates

Limitation period on interest is 6 years, 12 years on capital, there is a good chance you can use the limitation act as a full defence here, but as with everything, the devil is in the detail, so send the prove-it letter as advised, and let us know what they send back to you.

Is it this bunch that have written to you?:

Welcome to Hessonite Mortgages - Hessonite

buster17

Any update on this situation? I am in a very similar situation having received a mortgage shortfall letter from Hessonite this week. I’m in Scotland so time frames on the debt are different. Not sure what to do next tbh  

sourcrates

buster17 said:

Any update on this situation? I am in a very similar situation having received a mortgage shortfall letter from Hessonite this week. I’m in Scotland so time frames on the debt are different. Not sure what to do next tbh  

Advice to you is the same, send the prove-it letter, its specifically worded so as not to acknowledge the debt.

The time limit for recovering mortgage interest debt in Scotland is five years.

However, the time limit for pursuing mortgage capital debt is 20 years. 

This may be a complex issue, so see what response you get from the letter, you may need to consult a specialist money adviser, such as National Debtline (Scotland) for advice.

GoodEgg22

Thanks for all your reply. For some reason I did not get any notifications to my message so happened to Google it online so apologies for the delay.

I went to CAB twice and I seem to be getting conflicting information from everyone I speak to. I’m currently ignoring the second letter at the moment and will decide whether to send a “prove it” letter if I get more correspondence.  It is always there at the back of my mind causing me to feel anxious and, quite frankly, I can’t enjoy the build up to Christmas. I’d had a shocker of a year and thought everything was resolving. 🤷🏼‍♀️

In response I am a home owner. I worked hard to pay of my mortgage despite my ex making things very difficult financially for me - currently on minimum wage. So I don’t know if they can potentially make me sell my home although the debt is not related to my current property.