old repossession debt

mightymouse

Hi

To answer your question S20 Limitation Act relating to actions to recover money secured by a mortgage provides a 12 year limitation period.

However acknowledgement or payment can become the new start date but this is a difficult area as Courts will accept that some acknowledgment is merely an enquiry and does not change the start date.

KJK_2

I sympathise with the comments I have read, I had a relationship breakdown 11 years which resulted in the handing back of the keys to a jointly owned house. Approx 5 years ago I contacted Bradford & Bingley to set up a repayment plan to try and clear the debt, as I wanted to do the right thing. They would not give me any information about the debt (apparently this is common in these cases as it allows them to draw the debt out for as long as possible and hen they can claim the maximum amount of interest). They did however say a debt still remained and I stupidly started to make payments of £25.00 per month. I effectively did their work for them as I had now acknowledged the debt and every month I make a payment this starts the 12 year claim period agin. Then a couple of weeks ago I received Court papers for £10,700 this was the shortfall debt of £5700.00 plus interest. I am absolutely furious:mad: I feel I have been completely set up by the Bradford & Bingley. I have my own property agin now, however there is no equity in it so I am considering just letting them put a charge on the property - any advice anyone

budgie69

mightymouse wrote: »

Hi

To answer your question S20 Limitation Act relating to actions to recover money secured by a mortgage provides a 12 year limitation period.

However acknowledgement or payment can become the new start date but this is a difficult area as Courts will accept that some acknowledgment is merely an enquiry and does not change the start date.

Hi,
Can you explain what is meant by "acknowledgement" please? I have made/offered no payments as a) I am in no position to and b) the fact that they sold they resold the house for half its market value, and therefore created the shortfall peeves me enormously!

All advice in this thread is really appreciated, by the way. Thanks for taking the time.

budgie69

KJK wrote: »

I sympathise with the comments I have read, I had a relationship breakdown 11 years which resulted in the handing back of the keys to a jointly owned house. Approx 5 years ago I contacted Bradford & Bingley to set up a repayment plan to try and clear the debt, as I wanted to do the right thing. They would not give me any information about the debt (apparently this is common in these cases as it allows them to draw the debt out for as long as possible and hen they can claim the maximum amount of interest). They did however say a debt still remained and I stupidly started to make payments of £25.00 per month. I effectively did their work for them as I had now acknowledged the debt and every month I make a payment this starts the 12 year claim period agin. Then a couple of weeks ago I received Court papers for £10,700 this was the shortfall debt of £5700.00 plus interest. I am absolutely furious:mad: I feel I have been completely set up by the Bradford & Bingley. I have my own property agin now, however there is no equity in it so I am considering just letting them put a charge on the property - any advice anyone

Hi,
I know how frustrated all this is, and your situation really does show that honesty isn't always the best policy, is it?
I wish I could say something/anything in the way of advice, but words fail me!

mightymouse

budgie69 wrote: »

Can you explain what is meant by "acknowledgement" please? I have made/offered no payments as a) I am in no position to and b) the fact that they sold they resold the house for half its market value, and therefore created the shortfall peeves me enormously!

All advice in this thread is really appreciated, by the way. Thanks for taking the time.

Hi

The best I can do for tonight is give you a quote, for now do nothing and see what develops, do you own your current property?

Acknowledgements must be in writing and signed by the customer.

As with payments, lenders will need to produce evidence of the acknowledgement.

mightymouse

Hi

To KJK re

Then a couple of weeks ago I received Court papers for £10,700 this was the shortfall debt of £5700.00 plus interest.

You should take some advice re claim for interest also re how much to offer in settlement. (say £1-£1,500)

[FONT=&quot]The case of Bristol & West v Bartlett (2003) made it clear that a limitation period of 6 years applies in relation to interest on shortfall claims[/FONT]

budgie69

mightymouse wrote: »

Hi

The best I can do for tonight is give you a quote, for now do nothing and see what develops, do you own your current property?

Thanks for that mightymouse, I haven't made any written statement or signed anything, so that's something I suppose!

And no, I don't own any property, and have no intention of! Once bitten twice shy I guess. I think my best option is to seek legal advice, or at the very least contact the citizens advice. Anyone know how clued up the CAB are about these things?

mightymouse

Hi budgie69

I haven't made any written statement or signed anything, so that's something I suppose!

It is something because it means the claim for the shortfall is likely to go out of time.

I would wait and see but in the meantime take as much advice as you can get but try not to have anyone contact the lender on your behalf unless they know what they are doing.

good luck

SingleSue

They got us one month before the 12 years were up although our circumstances were about the same as all those years before. They hounded and hounded us, ringing us 4,5,6 times a day, several letters every day etc. I was already near nervous breakdown due to 2 of my children being diagnosed autistic within a year and then we had these people constantly hounding.

We were mis sold the mortgage but when offered the chance to claim, we assumed that as it was so long ago (took the mortgage out in 1990) and because we didn't really want to open old wounds, that we wouldn't bother.

Stupid thing was, when we were repossessed, we offered a monthly sum and they refused...and then we didn't hear anything for 11 years and 11 months.

We eventually settled for a percentage of the outstanding amount (thanks CAB!) but only after lots of threats from them and me threatening them that I was going to go bankrupt and they could whistle for the money then.

pamaris

If I were you I'd investigate this 12 year statute of limitations for collecting the debt. If it applies, don't make a payment or acknowledge the debt (ie don't say 'it's mine'). Drag it on as long as possible. Make it clear that you don't accept responsibility for the debt, and you have no assets, don't own your home & you're on benefits so they're wasting their time.