Outstanding mortgage on repossessed flat in 1992

dorien

Can anyone offer any advise, my husband had a flat bought in 1991, but due to unemployment it was repossessed in 1992. Citibank sold the flat leaving a shortfall of approx £17,000 +. this was passed to solicitors to chase the debt on behalf of Citibank. He had been paying between £20/£40 a month until last year when we lost our business.
Can they still persue this debt after 16 years. They keep saying we can make a one off payment to clear the debt but we really cant afford to offer much.
Can anyone offer any advise.
Thanks.

homer_j_3

they can chase for upto 6 years from the date you last acknowledged the debt I think.

~Beanie~

I'm pretty sure that the time limit is 12 years for mortgage debt and this is from the last time that you acknowledged the debt i.e made a payment. So therefore, yes they can still pursue it. Even if it is 6 years even, since you have been making payments up until 2007.

mightymouse

They keep saying we can make a one off payment to clear the debt but we really cant afford to offer much.

Hi

How much is much? I wonder whether the paperwork is in order by today's standards.

What is the current amount outstanding?

If you get an opportunity to get out of the situation for a small lump sum then (if thay are entitled - see paperwork origional court order - with / without money judgement) then this will protect your current home from an eventual charge against your husband's interest in your current property. (usually for the full amount owing plus interest.)

Do you have this information without having to contact the Solicitors?

homer_j_3

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

That has more information.

dorien

mightymouse wrote: »

Hi

How much is much? I wonder whether the paperwork is in order by today's standards.

What is the current amount outstanding?

If you get an opportunity to get out of the situation for a small lump sum then (if thay are entitled - see paperwork origional court order - with / without money judgement) then this will protect your current home from an eventual charge against your husband's interest in your current property. (usually for the full amount owing plus interest.)

Do you have this information without having to contact the Solicitors?

Whenever they send any correspondence, they only ever quote the original amount outstanding (£ 17,425.99) even though he has been making payments for most of the last 16 years (be them small). At one time in the past they were willing to accept £1000 in full and final settlement, but we could not raise it at the time. Whats the chances of them accepting that again ?

mightymouse

Hi

Thanks for your reply.

Homers_J link is a good one to read and digest......

I would say that £1k is ok if they will accept this but read the lead about accepting liability and possibly marking correspondence 'without prejudice' or why not give the debt helpline a ring.

There are a number of concerns that I would have and I would tread very carefully.

There are also a number of reasons why they would want rid of this and if you are happy at £1,000 then ok.

Convince the Solicitors that it will be a struggle to pay them and provided it is in full and final settlement.

Having read this I would be more comfortable if you spoke to the debt people for advice as they may negotiate this for you.

Is your husband a joint owner on your current property?

dorien

[quote=mightymouse;10086

Many thanks, I have been on the link, very helpful. Have written to the solicitors dealing with it, marked it "without prejudice" and have started with an offer of £500, sent detailed Income/expenditure form and pointed out our income is not likely to improve in the near future, also informed them we are making payments towards our mortgage arrears on current property (due to losing our business).
Yes my husband is joint mortgage holder on current property.
Whats most annoying is that when he took out the mortgage on the flat in 1991, he paid an Insurance policy to cover this sort of thing, but it protects the lender not the borrower, they sold the flat for less than market value, and still chased him for the balance.
Thanks to everyone for there input, your all stars, will let you know what they come back with.

Kez100

Do you have any equity in your present place? I'm assuming not.

mightymouse

will let you know what they come back with.

Hi

Please do that but also contact the National debtline for advice (FREE) before going further on your own behalf.

dorien

Yes about £ 70,000, thats why I want to avoid them trying to put a charge on this property.