Mortgage Shortfall - Landmark Mortgage (Previously Northern Rock) - c.£37,000.00

BBRGamer1

Hello All,

My mother recently received a letter from Landmark Mortgages regarding a shortfall of c.£37,000.00 that occurred following the repossession of her home in 2015/2016. 

Within the letter they state they first wrote to her in March 2016(which she has no recollection of) to let her know they sold the property. 

She is understandably worried about this, and i'm feeling a little out of my depth as i've never dealt with something of this nature. I've done some reading on the 6-year interest / 12-year capital rules, but what i'm really interested in is the likely outcome of this. 

She has no assets with the exception of a £3k car which she needs to get to work, she is in the process of speaking with National Debtline regarding a budget and then they will offer her guidance on what to do next. 

As of today, no contact has been made with Landmark to acknowledge the debt. 

I'm in one mind to just tell her to keep ignoring it, it's already been at least 9 years and what could they possibly take from her? She doesn't have anything else but the car which she needs. 

Any guidance or first hand experiences would be welcome! 

ManyWays

So your mum is renting a place at the moment? A Debt Relief Order may be her most sensible option and she should ask National Debtline about this. 

sourcrates

What normally happens in these situations with mortgage shortfall debts is a few collection letters and not much else.

Not many people in midlife can afford to make much of a dent in a debt of nearly 40k.

With no assets to her name, there`s not much that can happen here, if Mum writes and tells them she can`t afford payments, and has no assets to realise, they will probably turn their attention elsewhere.

I would certainly try that first, before looking at anything else.

BBRGamer1

sourcrates said:

What normally happens in these situations with mortgage shortfall debts is a few collection letters and not much else.

Not many people in midlife can afford to make much of a dent in a debt of nearly 40k.

With no assets to her name, there`s not much that can happen here, if Mum writes and tells them she can`t afford payments, and has no assets to realise, they will probably turn their attention elsewhere.

I would certainly try that first, before looking at anything else.

Hello Sourcrates, thank you very much for your comment!

I agree with you, she has nothing to take, so I'm hopeful they have bigger fish to fry.

We've sent them the National Debtline letter for more information, as we have 0 paperwork regarding this mortgage.

I'll update here once we've made some proper progress, it will hopefully be useful should anyone stumble across the thread that's in a similar situation.