Old House Reposession still Haunts us!!! Please Help..

gothika

We had a mortgage for a flat 20years ago that got reposessed in 1993 we went to court and handed back the keys. Since then the mortgage who was with Alliance and Leicester was handed to a company called Capital Recoveries for debt repayments.

Every month we pay £20-£30 now they are asking for more. we cant actually pay much more as im a student nurse full time and partner still in full time work.
A letter came this morning telling us that they can seek a legal charge over our property in order to secure the money owed to them.

What are our rights and can they do this? We are in debt with credit cards and struggling enough now with 2 kids and no help for me.

Can anybody offer us some valuable advice please??

silvercar

Get a statement from them of the amounts you have paid and the outstanding amount.

Go though it with a tooth comb, you may find that you have paid a lot of interest and not much capital.

Then see if you can offer a capital amount as a full and final settlement. As they have bought the debt off the lender, they will have paid peanuts for it and may well settle for a small percentage.

Although the lender only had 12 years to chase you from repossession, once you are in contact there is no time limit on repayments.

gothika

We were offered a £5000 to write of the debt but theres no way we can afford it. What about the legal charge? how does that work?

gothika

The debt was £21,000 now £20,547. Mostly intrest paid.

luckyfool

If you have equity in the property then you could look at a secured loan or a remortgage to pay them off in full and get them off your backs.

m1ntie

I am not an expert but I think you will find that if they put a legal charge on your property, the debt plus rolled up interest has to be payed when the property is sold at some time in the future.

If you owe C£20k now in ten years time with rolled up interest it could be over £30k.

I would try and borrow the £5K and clear the debt.

mightymouse

Hi

When did they obtain Jugment for the debt?

The Alliance and Leicester cannot sell their responsibily under FSA which limits the interest on the debt.

Follow sivercar comments and obtain a statement from the agent and the lender.

homer_j_3

Did a broker advise you on the mortgage originally?

gothika

No, no mortgage adviser. The debt agency "Apparantly" work for the Alliance and Leicester in helping to recover the debt.

But ive been told this afternoon by consumers debt agency that they cannot take charge of property without us defaulting on repayments and it going to court with county judgement against us..

gothika

We've never missed a payment!!

homer_j_3

Ok sorry, misread this.

I would ask the debt collection agency who owns the debt. Is it them or is it the alliance and leicester. If its the alliance and leicester then that is who you should be paying, if it is them, then ask them to legal assignation of the debt.