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Reposessed, now chasing for defecit jointly/severally liable- Advice needed


one20
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Hi all

 

Me and my x have had acrimoniously had our ex marital home repossessed.

 

she is unemployed and on benefits, I am employed.

 

I have recently received 2 letters from HPL solicitors requesting a "non prejudice" payment, or offer of monthly payments for the deficit since the sale of the house.

 

The problem is that I'm unable to clear the deficit, nor am I realistically able to pay them anything, moreover the mortgage was taken as a joint mortgage, and as much as I understand that we are both jointly and severally liable, I don't know where I stand in terms of them chasing me, her, both of us, or just me alone?

 

If she states she has no income, is it likely that they will chase me for the whole amount? is she in a better position than me given she has been on benefits since before the repossession?

 

I really don't want a CCJ, however I would like to know what options I have and what the likely outcomes are to be?

 

i.e., if an agreement is not made with the solicitors, and a CCJ is applied/granted, would we both get one, or is she likely not to get one, as she has no income? Also if I don't contact them soon, are they likely to start proceedings? will they be aware that their were two liable parties, hence are they likely to have written to her too? (when she left the property, the lender would refuse to take her forwarding address from me, as they stated that would be against dpa, hence if the lender didn't have her forwarding address, is it likely that the solicitors will?)

 

 

I’m very concerned and worried, and to make matters worse, the only reason why the house got repossessed in the first place was due to her denial of communication with me. She refuses to communicate or mediate in any way shape or form.

 

Any advice/help is most appreciated. I am looking to get an appointment with my local CAB, however I have already received the 2nd letter from HPL.

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If (and it's a big if) they take you to court it will be done individually.

 

In these circumstances creditors can chase either of you (or both!) for the full amount of the debt. In practice they go for the one with most likelihood of them getting paid.

They probably know that your wife has no assets and no income which is why they going after you.

 

As regards any equitable distribution of the debt between you and your partner that is a civil matter between the two of you.

I really do appreciate all those 'thank you' emails - I'm glad I've been able to help. Apologies if I haven't acknowledged all of them.

You can also ding my gong if you prefer. :)

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Thanks Palomino.

 

If I was to make an offer of a payment, would they necessarily pursue the other party to the mortgage for a county court judgement, or would they not given the cost of the judgment?

 

also when you say a big if, what are the factors here? (bearing in mind that the deficit is, according to them in the region of 30k).

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Hi One,

The shortfall is a joint and severally liable debt and as mortgages are written under trust the debt stands for 12 years.

 

If you have any funds available it might be worth trying for a silly F&F. As you are working they will go for you and could try for a charging order on any property you may now have. Sorry

 

This will also bump you.

 

GK

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Hi one20,

In 1995 i handed in my keys to my house could not keep up the payments etc because of redundancy. Did not here a thing untill 2003 when i got a letter saying i owed 30 thousand pound shortfall, as shocked as i was i thought that it was just too big amount to worry, had no chance of repaying that so ignored everything. moved about a bit but they still caught up with me and they offered a 3000 full and final. which i still could not afford. then found this site and sent the letter below. have not heard a peep since.

 

The Loan Company

Company House,

Church Street,

Newtown,

Kent,

R1 7HG

 

 

Dear Sir/Madam

 

Re:− 4563210025897412

 

Thank you for your letter call concerning the above account. We do not acknowledge the claim. Please supply us with a full breakdown of the balance claimed under the above account.

 

In order for us to deal with the matters you raised, we should be grateful if you would supply we with answers to the following points:

  • when did the arrears begin?
  • when was the last payment made on the account?
  • when was any Possession Order given?
  • when was the house sold?
  • what valuations were made on the property before the sale?
  • what costs were involved in maintaining the property during the period between the repossession and the sale?
  • how was the house marketed and sold and at what price?
  • what costs were involved in selling the property?
  • has a claim been made against the indemnity insurance and how much was recovered?
  • how has interest been calculated from the start of the arrears?

Please supply us with a full breakdown of the balance claimed under the above account. We look forward to receiving your reply as soon as possible.

 

Yours faithfully

Mr A N Other

Cabot have been my friends for 2 years(EDIT) Sent packing statute barred.

past due credit have been friends for 1 week(EDIT) Sent back to arrow, now statute barred.

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I think as Palamino pointed out in terms of any shortfall on the sale - they can decide who they pursue.

 

If your ex has no money and is on benefit - they may decide not to pursue them - it makes more sense to chase you.

 

Just out of interest how did they repossess - was it following proceedings or was it a voluntary handing back - I have to say that its' likely that either will have damaged your credit rating - you may also already have a CCJ

 

If you wanted to involve your ex in any proceedings you could join them to any proceedings and seek an indemnity for a half of the debt BUT if they haven't got any money - you can't have what they haven't got

If I've helped feel free to add to my reputation.

 

I am not a Practising Lawyer. My comments are my opinion only. You should not rely upon those comments and should always take your own professional advice from a practising Solicitor or Barrister

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