old repossession debt

budgie69

Hi, I'm really new to all this but I'm really desperate for some advice on house repossession. After a divorce 11 years ago, i had my house repossessed. What I was wondering, was how long the mortgage company can hound you for repayment of the debt?
I'd really appreciate any advice offered ! This has been going on for years, how much longer can it go on? Anyone else had the same problem?
Excuse me if I've put this in the wrong place!

Ian_Griffiths_Halifax

Sorry to be the barer of bad news, but they COULD hound you to death. I have known lenders find ex-clients many years after repossession and after re-marriage and they can still come to you. What's more, If there was a claim by an Insurance Company against a Mortgage Guarantee Indemnity Policy, an (Insurance Policy which the lender often takes out to insure them selves in the event of a repossession, and which covers the difference between 75% of the value of the property and the loan amount given at the time), then the Insurers can come after you too.

silvercar

They have 6 years to find you, see here:

"How long after my property is taken into possession can a lender pursue me for a shortfall debt?
In England, Wales and Northern Ireland, a lender legally has 12 years in which to contact the borrower to begin the process of obtaining repayment of shortfall debt; this period is usually 5 years in Scotland.

From 11 February 2000, lenders who are members of the CML have agreed voluntarily that they will not pursue a shortfall debt following a mortgage possession if they have not managed to contact the borrower within a period of six years from the date a property was taken into possession.

For more information on the voluntary agreement please see the consumer guide on Debt following mortgage possession.

Residential mortgages sold after the 31 October 2004 are regulated by the Financial Services Authority (FSA). The mortgages conduct of business (MCOB) regulations follow the standard set by the CML voluntary agreement, requiring lenders to begin proceedings to collect a shortfall debt within a period of six years."

From here: http://www.cml.org.uk/cml/faqs/?faq_id=64

Ian_Griffiths_Halifax

Nice one silvercar. As a broker for nearly 19 years I had not come across this. The repossession that my client had had, was way before 2000. Please also note that this new code is VOLUNTARY.

nobblyned

Note it only says they have 6 years to make contact. Doesn't say how long they can pursue for once they have made contact, or started 'proceedings'.

The OP doesn't say whether he is in touch with the mort. co. or not, or whether they have started any procceedings against him.

silvercar

Ian_Griffiths_Halifax wrote: »

Nice one silvercar. As a broker for nearly 19 years I had not come across this. The repossession that my client had had, was way before 2000. Please also note that this new code is VOLUNTARY.

I remember reading, on the CML site somewhere, that for repos before 2000 the 6 year clock started ticking from Feb 2000. It is voluntary, but lenders have AGREED to it:)

nobblyned wrote:

Note it only says they have 6 years to make contact. Doesn't say how long they can pursue for once they have made contact, or started 'proceedings'.

Absolutely, once they have found you, they've got you.

Most helpful for older repos where the obligation to get the best price for the property was not as stringent as now.

Pobby

Just a anecdote.Person no.1.He handed back the keys to his hotel in the early 90`s.Was hounded for around £100k.A nervius breakdown later he finally agreed to £4k.In fact he told me that they may well have gone lower.Person no.2.Twice he handed the keys back.Has had communication a few times demanding money but as he has zilch he couldn`t care less.

petermb_2

budgie69 wrote: »

Hi, I'm really new to all this but I'm really desperate for some advice on house repossession. After a divorce 11 years ago, i had my house repossessed. What I was wondering, was how long the mortgage company can hound you for repayment of the debt?
I'd really appreciate any advice offered ! This has been going on for years, how much longer can it go on? Anyone else had the same problem?
Excuse me if I've put this in the wrong place!

There are a number of ways that you can deal with this, some simple and some not so. You say that this took place 11 years ago. Please tell me you used a broker to find the mortgage in the first place. If you did you will have a number of birthdays all in one go very soon.

minimike2

Thats a way to get someones hopes up.....what makes you say that petermb? Just becuase someone arranged a mortgage 11 years ago its automatically been misold?

Ian_Griffiths_Halifax

Can anybody else hear those Ambulance sirens?

petermb_2

I dont hear sirens....just alarm bells....and quite rightly so...