Mortgage shortfall

tabbycats4321

My home was repossessed in September 2013. The shortfall has been sold to hiyalite who are now chasing me for the arrears. Do I have to pay them

darkcloudi

Generally, the Limitation Act 1980 applies, which states that most claims, including those related to debts, are subject to a limitation period of 6 years from the date of the last payment or the date when the debt was due.

If the repossession occurred in 2013, it would be highly unlikely that a company can claim a shortfall more than 6 years later (i.e., after 2019), unless:

1. The debt was acknowledged in writing or by a payment made after the 6-year period, which would reset the limitation period.
2. The company obtained a County Court Judgment (CCJ) for the shortfall within the 6 years, in which case they could still enforce the judgment after the 6-year limit has passed.

If a company is still pursuing the shortfall after 6 years without any of the above conditions being met, you could potentially argue that the debt is statute-barred and no longer enforceable.

Although you may want to seek some advise from a legal expert

sammyjammy

Its 12 years for mortgage shortfalls section 20 (1) of the limitation act.

darkcloudi

Oh, didn't know that, as I googled. So guess its within the 12 years.

tabbycats4321

Trying to find legal experts to help is difficult.  They all seem to work for the otherside

silvercar

i suspect they are sniffing around because the 12 year deadline is drawing near. Your choice whether you duck and dive for another few months or tackle it head on. Bear in mind they would have bought the debt for pennies to the pound, so may be prepared to accept a small amount in percentage terms in full and final settlement.

tabbycats4321 said:

Trying to find legal experts to help is difficult.  They all seem to work for the otherside

If you have the money to pay for legal experts, you probably have the money to offer a settlement.