DCA after shortfall on Mortgage Repossesion

[Trojan1401]

I was wondering with the vast knowledge on this forum whether anyone could provide some needed advice.

 

In a past life my house was repossessed (March 1999 ) and then subsequently sold by the bank with a shortfall. Correspondence was sent by the bank in August 2002 which advised the shortfall. I did not acknowledge debt in writing although there was a subsequent phone call. Years passed & now a further agent on behalf of the bank has caught up. I have had conversations with them however again I have not acknowledged anything in writing.

 

Although the date of repossession was March 1999, the date of sale is not stated in any correspondence.

 

On advice from CAB ( and another well known forum ) I wrote to the DCA & transcript as follows;-

 

" I refer to previous correspondence in respect of the above and apologise for the delay in replying to this matter.

 

Due to the nature of the correspondence, I needed to seek professional advice before replying to you in writing.

 

Following the advice provided, I would be grateful if you could request from xxxxx full details of how the amount allegedly owed is calculated. Please therefore arrange for the following details to be provided;-

 

• Full Statement of Mortgage Account to include a complete list of transactions and charges relating to the account since its opening including charges accrued for arrears and missed payments.
  
• Date of Sale and amount received by xxxxx following the sale and expenses associated with such sale.

Please acknowledge receipt of this letter in writing advising whether you are able to arrange the provision of this information. Should you not be in a position to provide this information, please provide me with the contact name and address of the xxxxx representative to whom I may write requesting the above.

 

Until the above information is provided, I cannot be in a position to admit liability for the amount in dispute therefore please refrain from further recovery action until the above is received."

 

I received a reply dated 26/7 following my reminder 18/7.

 

"My client can not detail a list of transactions since the start of the mortgage as it would take a lot of manpower and time to do this. Below are details available

 

Up until the date of repossession the arrears wrer £xxx.

 

1. balance at redemption was £x

2. Sale proceeds were £x

3. Estate Agents costs were £x

4 Solicitors costs weer £x

5. VAT recoverable was £x

6. Total outstanding £x

 

The letter goes on to say that their client believes that I now have had long enough to deal with this matter & there initial agreement offer to pay 40% of the debt will no longer apply should I not accept by 20/8.

 

Yesterday I received a letter stating I had failed to cooperate even though I have until 20/8 to reply & If I do not reply within 10 days of their letter dated 8/8 then the account will be transferred to their Legal dept to "review feasibility of forwarding account to solicitors for recovery through legal process.

 

My questions now being ;-

 

1. I've requested a full breakdown of charges etc which the bank/DCA have failed to provide. There is a significant discrepancy between what was outstanding and amount allegedly owed. Also the amount the has was sold for was if I can recall, far in excess of the original mortgage amount.

2. There was a mortgage indemnity policy attached to the loan therefore, am I entitled to know any recoveries against this ?

3. Members of the CML have agreed not to persue mortgage debts where no contact / agreement etc in place 6 years from the date of sale. ( Not sure of excact date as the still have not told me ) but would assume before Apr 2000. Should they therefore still be persuing this.

 

Any additional help / advice on this subject would be gratefully appreciated. I do intend to challenge their letter as the information requested has not actually been supplied.

 

Sorry a bit long winded but tried to get as much fact in as possible.

 

Many thanks.

[Rich44]

If there has been no payments and no contact between when they repossessed the house and now then as far as I can see the debt will be statute barred but I may be wrong im sure someone who knows for sure will post a reply soon

[Guest Zooman]

If there has been no payments and no contact between when they repossessed the house and now then as far as I can see the debt will be statute barred but I may be wrong im sure someone who knows for sure will post a reply soon

12 years for secured debt not 6.

 

Paragon v Banks & Halifax v Grant The Court of Appeal made a decision. Thats is that the limitation period for mortgage lenders recovering mortgage shortfall debts is 12 years (Section 20 of the Limitation Act 1980).

 

As to the rest I will post latter on some pointers only.

[Trojan1401]

Agreed Zooman re 12 years on secured debt however Council of Mortgage Lenders agree not to persue after 6 years I believe.

 

One of my main gripes though is lack of detailed information from DCA or lender as I cannot see how so much can be owed in view of a relatively small mortgage initially & an alledged arrears amount of circa £1600. They say amount owed is over £16k.

 

Thanks for responses so far though.

[Guest Zooman]

Means nothing but even so this runs from 2004 so if we use this they still have to 2010.

[Guest Zooman]

Make a "right of subject access" request for all detail held about your mortgage.

 

We have a letter here for bank charges you will need to alter it for your needs.

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/516-data-protection-act-subject.html

[Guest Zooman]

How much did the house sell for?

 

What was the house true value?

 

How much was the full amount owed at the time (arrears and principle)?

[Trojan1401]

Thanks Zooman,

 

Arrears to date of repossesion - £1342.70

Balance at Redemption - £47 705.79

Sale Proceeds - £32 000.00

Estate GAent Costs - £910.62

Solicitor Costs - £194.37

VAT Recovered £185.83

 

Total o/s - £16 624.95.

 

They have however ofered to accept £6 700.00 as a full and final settlement.

 

There was a Mortgage Indemnity policy in place however I no longer have any copies.

 

Thanks

[Guest Zooman]

The house sold for 32k yes, what would you have got if it was on the market under normal circumstances.

[Trojan1401]

To be honest I really don't know as this was March 1999 & prices have gone through the roof since then. I've checked on a website & currently prices are circa £110k but then, £32k was probably just short of market value - suspect would have been £40k (ish) with the right buyer.

[andrew1]

I believe this website can tell you exactly what price your house went for and others in the area too waaaaay back! Hope it helps Free guide to UK property prices - MyPropertySpy.co.uk - you have to register.