urgent help needed please

pebbles2791

Hi, I hope someone can help...I'll try and keep it as short as possible..

Basically, ex-husband ran up thousands of pounds of debts, peed off and because they can't find him companies chased me for joint ones. I set up DMP with CCCS which I have paid every month for over 4 years now...

Just before I moved home (approx 6 mths ago), I recieved a letter from a DCA demanding 3and a half grand for debts on the mortgage after the sale of a house - it was repossessed a few months after I moved out.

I never recieved any correspondence from the mortgage company regarding any debt, and this came out of the blue from the DCA 8 years after I moved out of the marital home.

I ignored (stupidly :-() the letter, and now find tonite on my doormat a letter to contact a mobile number urgently.

I just don't know what to do....do I ring? Do I ask for any agreement first? as it's a mortgage debt where do I stand...

I feel I'm just getting back on my feet then something else from my hell past with ex-husband turns up to set me back....

It's a very brief version but please, please please tell me what I should do..I'm sick with worry...

Thank you for any help

G-G_4

Don't worry!

The debt may be statute barred... and if so you don't have to pay anything.

When did you last make a payment on that account?

xx

pebbles2791

Hi, over 8 years ago...I moved out the marital home and my ex-husband lived there for a few months afterwards...then he upped sticks and left, house repossed and until 6 months ago (letter at old address) I heard absolutely nothing...

Thanks for replying....I'm worried sick

poorandindenial

Don't call and don't let them bully you into speaking to them until you are sure about what you want to say and do (and even then you can insist it is all done in writing which is much better as then they can't make things up and you can spend time thinking about what you want to say and how you want to say it)

fermi

First of all have a read through this info from National Debtline.

Link: Factsheet | Mortgage Shortfalls

Read the whole factsheet through, but in particular note the info/advice quoted below. Tel: 0808 808 4000

It would also be well worth give National Debtline a call to discuss the situation.

The Financial Services Authority rules

From 31 October 2004 the Financial Services Authority (FSA) has taken over the regulation of mortgage lending and problems with existing mortgages.

The Mortgage: Conduct of Business Rules say that a lender "must deal fairly with any customer who has a mortgage shortfall debt". If the lender decides to take action to recover the shortfall they must make sure you are told about this in writing, within six years of the date of sale of the house. If the lender does not do this, you can complain to the Financial Ombudsman Service.

INFORMATION
Contact details for The Financial Ombudsman are listed under the 'Useful addresses' section at the end of this fact sheet.

Council of Mortgage Lenders policy

The Council of Mortgage Lenders (CML) has a policy on the collection of mortgage shortfalls which should be followed by their members as a point of good practice.
From 11 February 2000 the CML says anyone whose property was repossessed and sold and who has not been contacted by their lender within six years from the date of sale will not be asked to pay the shortfall.

WARNING
The lender may argue that if they can prove they tried to contact you that this counts as 'contact', even if you did not receive the letter.

Under the CML policy, if your lender contacted you before 11 February 2000 then it appears that they can continue to try to recover the shortfall even if your house was repossessed and sold more than six years ago. If this applies to you then you could try arguing that it is unfair for the lender to keep trying to recover the money if your house was sold over six years ago.

Point out that they have limited the recovery period for new cases and have a 'commitment to fair and sympathetic treatment for people for whom possession cannot be avoided'.

What should I do?

Work out when you last paid or acknowledged the debt and when the house was sold. If this was over 12 years ago you can use sample letter M5 and argue that the debt is unenforceable under the Limitation Act 1980.

Check if your mortgage lender is a member of the CML.

If they did not contact you before 11 February 2000 and it is six years or more since the house was sold without any contact from your lender, you can argue the CML policy with your lender. Use sample letter M4.

Has your lender sent you a letter within six years of the sale confirming that there is a mortgage shortfall and that they intend to recover the debt?

If you did not receive this letter you may be able to complain to the Financial Ombudsman Service. Ask your lender for a copy of their complaints policy and follow this first.

ADVICE
Options for dealing with a mortgage shortfall are complicated. You may need to contact us to discuss which option may apply to you in your situation. Phone us for advice.

JOINTLY OWED DEBTS

If your mortgage was in joint names, you need to check what the other borrower has done. If they acknowledge the debt it doesn't affect you but if they have made a payment the limitation period starts running again for both of you from the date the last payment was made.

fermi

G-G wrote: »

The debt may be statute barred... and if so you don't have to pay anything.

Mortgage shortfalls aren't statute barred until 12 years, but the "Council Of Mortgage Lenders" say that their members should try to recover anything more than six years old.

pebbles2791

thank you all for replying......I've had a quick read through that fermi and will read indepth later....

They definately didn't contact me, either the mortgage lender, nor the DCA who its been passed on to, until six months ago at old address....which was coming almost 8 years since I last had contact.

My immediate concern is that they have obviously been to my home...what do I say if they turn up? say that I'm not acknowledging the debt? that no contact has been made?

fermi

pebbles2791 wrote: »

My immediate concern is that they have obviously been to my home...what do I say if they turn up? say that I'm not acknowledging the debt? that no contact has been made?

Tell them to get lost, and that you know nothing of any debt.

They aren't bailiffs and have no legal powers.

In the meantime give National Debtline a call. With complicated situations like this you really need a one-to-one chat with an experienced advisor.

In_Search_Of_Me

Just wanted to send a hug - what a nightmare for you....

pebbles2791

I will, thank you so much fermi for your advice. Going to ring them now and I'll get back with what they say

fermi

pebbles2791 wrote: »

I will, thank you so much fermi for your advice. Going to ring them now and I'll get back with what they say

Good. Their phone lines can be very busy, so you may need to be patient.