Hounded after 12 Years

[eltonbongodrums]

Hi all,

 

I would be ever so grateful if anyone could advise me.

 

To cut a long story short, my ex husband contacted me and stated that a firm of solicitors had been contacting him about a repossession debt. This refers to our previous marital home that was respossessed 12 years ago.

 

He says that he has been contacted by them on and off for a number of years, however has never told me about this and is suddenly demanding half of the £14,000 allegedly owed ! He showed me a letter from the solicitors but it only mentions his name and address and does not refer to me or the repossessed house.

 

Does this sound right? It seems a bit out of the blue to me?

 

Any advice gratefully received.

[postggj]

Well What I Can Tell You Is This Debt Will Be Statute Barred After 12 Years As Its A Mortage Debt

 

Dont Contact The Solicitor Yet

 

This Is A Big One

 

We Need To Know When The Last Time A Payment Was Made Or Acknowledgement Of The Debt In Writing

[eltonbongodrums]

Thank you for your prompt reply.

 

The last time a payment was made was around May 1997. I haven't had any contact with the mortgage company or anyone else since.

 

I know my ex husband has offered £1,000 (in April 2009) to settle but that has been declined. He told me about this on Saturday (26 Sept 09).

[postggj]

Was That Offer In Writing Or On The Phone

 

very Important

[eltonbongodrums]

He made the offer in writing (assuming that the letter he has shown me actually refers to this repossession).

[postggj]

Meny Thanks

 

Sequenci

Edited September 29, 2009 by postggj

[postggj]

i need back up on this as acknowledgement in writing has been made

 

no wonder the sols are quick

 

like i said

 

sit tight for a bit

[eltonbongodrums]

Thank you for your help - I'm so stressed I could sob - thank you I will wait to hear from you.

[postggj]

like i said

 

mortage debt is 12 years

 

not sure if the acknowledgement restarted the limitations act

 

the norm for say credit accounts is six years

 

 

like i said

 

ime unsure on the linitations with mortage debt

 

you may need to check back after people get in from work

[sequenci]

The letter posted by Postggj is incorrect; ensure you send this one instead:

 

(Your home address)

 

Date:

 

To:

 

Dear Sir/Madam

 

Account No:

 

You have contact me/us regarding the account with the above reference number, which you claim is owed by me/us.

 

I/we would point out that under the Limitation Act 1980 Section 20[1] "no action shall be brought to recover (a) any principle sum of money secured by a mortgage or other charge on the property (whether real or personal)…after the expiration of twelve years from the date on which the right to receive the money accrued".

 

As the last correspondence/payment or acknowledgement of this debt was made over 12 years ago and no further acknowledgement or payment has been made since that time I/we suggest that you are no longer able to take any action against me/us to recover the alleged amount claimed.

 

I/we would further point out that the Council of Mortgage Lenders (CML) has agreed that with effect from 11 February 2000, anyone whose property was repossessed and sold and has not been contacted by their lender within six years of the date of sale, will not be asked to pay the shortfall. Whether or not you are a member of the CML, I/we consider this policy to be an indication of good practice and urge its adoption.

 

I/we would also point out that from 31 October 2004 The Financial Services Authority (FSA) has issued 'The Mortgage: Conduct of Business Rules' which say that if a lender decides to recover a mortgage shortfall debt they must make sure the borrower is informed of this within six years of the date of the sale.

 

I/we await your written confirmation that no further contact will be made concerning the above account and confirmation that the matter is now closed.

 

Yours faithfully

 

(Your signature)

[sequenci]

*please amend to suit your situation. s5 of the limitation act doesn't cover mortgage shortfalls.

[postggj]

Thanks Sequenci

 

PLEASE CONFIRM SEQUENCI

 

THIS IS STATUTE BARRED

[sequenci]

Thanks Sequenci

 

PLEASE CONFIRM SEQUENCI

 

THIS IS STATUTE BARRED

 

From the sounds of it matey

[postggj]

Learned Some Thing New Today

Meny Thanks

 

Seems Eltonbongodrums Is Going To Be Very Happy

 

Just Send The Template To The Sols By Recorded Delievery Elton

 

Get Back To Us With The Reply

 

Regards

[sequenci]

Acknowledgement in writing by a person liable would only reset the limitation period for that person. So if your ex-partner has admited the debt within 12 years in WRITING the 12 year period would re-set to zero for THEM only.

 

If there was a payment made within the 12 years it would re-set the 12 year period for both of you.

 

From the information given I'm convinced that the debt is statute barred as far as you're concerned.

[eltonbongodrums]

You are both seriously fantastic!! I am so grateful - thank you.

 

Should I send this letter to the solicitors even though they haven't actually written to me personally? Or shall I just keep clear because it is after the 12 year period?

[postggj]

Well I Would Keep It In Reserve Just Incase The Solicitors Come After You

[sequenci]

The best thing to do is to only get involved with this when people start chasing YOU. There really is no point in bringing your whereabouts to the attention of anyone.

 

The creditor has the legal right to chase either party for the full amount or both. It seems that they have decided to chase your ex. If people wish to try and locate you it's pretty easy to do via various government databases etc.

 

If you're not being chased don't get involved.

 

Well that is my two cents anyway :0

[LilyLou]

Totally agree. Would copy the letter above and save for a rainy day. Your ex is the one that has to deal with it at present, best left that way;) don't you think!!

[eltonbongodrums]

Absolutely!! Thank you so much everyone - I might be able to sleep tonight . What a great site - I will definately be back.

[sequenci]

That's great. Welcome by the way

[jansus]

Debt following mortgage possession

 

Here is some information on what happens after a property has been taken into possession. If you are worried about losing your home see our consumer guide: Help if you are worried about your mortgage.

 

• What happens to your mortgage debt after your home is repossessed?
  
• What will the lender do if there is a shortfall?
  
• How long after the repossession can lenders seek the recovery of the debt?
  
• Does this time limit apply to every case?
  
• What do I do if I have a mortgage related complaint?
  

What happens to your mortgage debt after your home is repossessed?

 

After your lender takes your property into possession they have a legal duty to sell the property for the best price that can reasonably be obtained. The property will generally go on the market as soon as possible and your lender will get independent, expert advice on the price it should be sold for and the best method of sale.

If the sale of the property results in a surplus after all the money owed to the lender and any other secured lender has been repaid, then this surplus is returned you. Your lender should notify you of the surplus but if you cannot be contacted, the money will either be held by the court or your lender until you can be contacted.

But if the sale proceeds are not enough to pay off the money you owe to the lender, then there is a "shortfall debt" which you still owe your lender after possession.

Interest will usually continue to be charged on your mortgage loan until the property is sold and any shortfall is repaid. There will also be other costs charged to your mortgage account, including estate agents' costs in selling the property and legal costs.

What will the lender do if there is a shortfall debt?

 

If there is a shortfall lender will contact you as soon as possible after the sale of the property telling you that there is a shortfall debt. They will also let you know that the shortfall debt may be pursued by another company.

If interest is being charged on the shortfall debt, your lender will send you regular, written financial statements which will update you on how much you owe. It is important that you keep your lender informed of your new address after you leave the property so that you receive these statements.

The action that your lender takes will depend on the circumstances. A lender may or may not wish to seek repayment of the shortfall debt, but if they do they must notify you within six years.

How long after the repossession can lenders seek the recovery of the debt?

 

In England, Wales and Northern Ireland, a lender legally has 12 years to contact you to begin the process of seeking repayment of a shortfall debt; this period is usually 5 years in Scotland.

 

However, lenders are committed to fair and sympathetic treatment of people who have suffered repossession, and accept that individuals should not face long delays before being contacted to discuss repaying the shortfall. Most lenders will contact you fairly soon after possession to try to agree to a manageable arrangement for repaying all or some of the debt.

 

Lenders who are members of the Council of Mortgage Lenders voluntarily agreed from 11 February 2000 to begin all recovery action for a shortfall within six years of the sale of a repossessed property. If your property was taken into possession and sold more than six years ago, and you have not been contacted by your lender to recover any outstanding debt, you will not now be asked to pay the shortfall. In Scotland, lenders will begin recovery action within five years.

Does this time limit apply to every case?

 

The new time limit will not affect you if -

• you are already adhering to alternative payment arrangements for the shortfall debt;
  
• or, you have already been contacted by your lender, even if the initial contact was made by the lender after six years from the date of the sale of the property in possession.
  

The six year limit only refers to beginning recovery action and does not affect a lender's ability to recover the shortfall debt over a longer period. If there is evidence of mortgage fraud, the time limit will not apply.

 

After a repossessed property is sold, lenders can often find it difficult to contact former borrowers to advise them of any surplus monies or shortfall debt. If this is the case, your lender will use a variety of measures to identify where you are now living. This might include using tracing agents. If your lender or its third party agent are trying to contact you (for example, by letter or telephone) to discuss repayment of the shortfall, but you choose to ignore such contact (despite the fact that the contact is being made at your new address) then your lender will consider that contact has been made within the six year limit. If you are unclear whether contact has been made within the six year period, your lender will be able to tell you.

 

This is a general summary and the exact way your lender deals with you may depend on the type of mortgage and the date it was entered into.

 

 

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[jansus]

this is from the CML web site.

 

Just a thought is it actually the original lenders chasing or has a company "purchased" the debt?

[eltonbongodrums]

Hi there, thank you for that. I believe it is another company that has bought the debt.

 

I have since found out that my ex wants to sell his house and that is how they have found him because they want to take the money off any profit.

 

To be honest I haven't seen anything at all that actually refers to me or the repossessed house.

[postggj]

great find jansus

 

ill book mark that