Advice on Shortfall Mortgage Debt

[damynx]

Hi

 

I was wondering if you could help please.

 

I had my home repossessed in Jan 1999. Basically a second loan was taken out on the house by my idiot of an ex, I did not see any of the money from it. Unfortunately I was the only person listed on the mortgage, due to financial indiscretions of his (should have told me something huh!)

 

The only time that I have "accepted" the debt, was in reply to a repossession order to the court.

I have received letters over the years from Halifax and/or their representatives/debt companies. I have ignored them, or sent them back "not at this address"

 

I changed my name by deed poll 2 years ago (not to escape the debt, to escape the ex!)

They have now managed to trace me under my current name (Debt collection company)

 

Given that I think they are coming up against the Statute of Limitations in Jan next year (just 2 months away). What would your advice be? Ignore the letters? Or make an offer? The debt is £13,000. I have no assets, as I have refused to have my name put on another mortgage because I am aware they can have a charging order, or even repossession order for any other property with my name against it.

 

I have a few questions: Does the clock start on the statute of limitations from Repossession date, or from date of them "informing" me of the shortfall. Because certainly in the early days I do not recall any letters from Halifax. I have never replied to their letters, I have never admitted the debt post Repossession.

 

Advice?

 

Many Thanks

 

T

[jimbo45]

My answer to these is not a legal response but a PRACTICAL arrangement. Sometimes people in the legal profession get to carried away by thinking what actually happens in a Court can ALWAYS be carried out --often there is a BIG difference in getting a Court Judgement and having it actually enforced.

 

My instinct is to anybody who has been forced out of their home by GREEDY financial institutions shoul if they don't own any other property NEVER EVER pay any shortfall since the companies usually sell the property at knock down prices to "friends" such as local builders etc etc.

 

If you just REFUSE to pay up what can they do -- you don't have any seizable assets of any significance -- and the worst that can happen is that they can applyu for a Bankruptcy order which will cost THEM an additional 500 GBP at least.

 

These days going Bankrupt is not a stigma any more and that effectively ENDS the matter (plus any other debts you might have).

 

You can get out of bankruptcy again after 5 years -- OK you can't have a Credit card but these days thats no bad thing either, and you need to operate a Bank account rather more restrictively but it might be worth while -- the company chasing you in any case is unlikely to make you Bankrupt if there is no realistic chance of them getting any money.

 

So although not legal advice I'd just tell the company chasing you in no uncertain trerms to FOXTROT OSCAR and just call their bluff on any threat of Court proceedings -- if they DO go it's just wasting the courts time and THEIR money.

 

Considering the HUGE insane amounts of money paid by the taxpayer to bail out these financial institutions (and they are BACK to their old ways of paying out really DISGUSTING bonuses to people just sitting at desks and making a few mouse strokes) the way they behave to people experiencing financial hardship is just beyond words - especially when they've just forced someone out of their home.

 

I wouldn't pay any of these vermin a single PENNY whatever their Kangaroo Courts and Lickspittle judges say.

 

Cheers

jimbo

[damynx]

Thanks for the one reply I have had :)However, Bankruptcy really is not a road I can go down.Does anyone else have any suggestions?Thanks!

[jimbo45]

Hi there

I doubt if they would even bother to attempt going for Bqnkruptcy proceedings since it will COST THEM money which they will have totally NO HOPE of ever recovering.

 

Just tell them you have ZERO to pay and if they DID actually be stupid enough to go to court again the court would probably stipulate an amount of 1 GBP a month to pay.

 

There's a HUGE difference in what they ostensibly can "legally collect" and what is actually PRACTICAL.

 

If you don't have any money --short of winning the lottery _ where do these BOZOS think you are going to get any money from.

 

In any case having been forced out of your home why should you bend over backwards to line their pockets even more.

 

Cheers

jimbo

[firstship]

Hi....damynx...........you are obviously aware from your thread that statute barred on a mortgage,is 12 years,when was the last time you paid any money or acknowledged the debt,the clock started from that date,again the way I read your thread SB is not very far off,,..............the only doubt in my mind is the name change,it could be argued in court that you did this to avoid the debt even though this is not the case...............how long exactly to SB based on no acknowledgement of debt by yourself?????????????????......................FS

[sillygirl1]

A mortgage shortfall debt is a low-priority debt, it is NOT a regulated debt and should not be paid - quite simply if the house was reposessed and the debt includes interest FROM the date of repossession then it is not owed like a mortgage was.

 

There are often inflated charges in it (my alleged £5000 shortfall included a £4,500 asset manager charge - when challenged about this the company could not adequately reply) and if it was as long ago as you say they can ONLY charge contractual interest for 6 years, not for 12.

[sillygirl1]

Statute barring on a mortgage is from the date that you last made a payment on the contratual amount, ie the last payment you made to the mortgage company prior to them bringing legal action... the CAUSE of the action.

[damynx]

Hi....damynx...........you are obviously aware from your thread that statute barred on a mortgage,is 12 years,when was the last time you paid any money or acknowledged the debt,the clock started from that date,again the way I read your thread SB is not very far off,,..............the only doubt in my mind is the name change,it could be argued in court that you did this to avoid the debt even though this is not the case...............how long exactly to SB based on no acknowledgement of debt by yourself?????????????????......................FS

 

Hi

 

Thanks for your reply. I have not paid any money at all since the house was repossessed, nor have I acknowledged the debt either. So what is confusing me is:

 

1. Does the clock start ticking from the last payment I made?

2. Does the clock start ticking from the day the house was repossessed?

3. Does the clock start ticking from the day the house was sold?

 

If its 1. Then I am already over the SB

If its 2. The end of January next year

If its 3. I have no idea when it was sold.

[damynx]

I have never made a payment on the shortfall, and probably before the house was repossessed, it was about 6 months before that, that anything was paid.

 

I have never acknowledged any debt, I have just binned any letters. The reason for never acknowledging, is that even though my ex was never on the mortgage, he sure as hell benefitted from ALL of the money on the second mortgage against the house, so why should *I* pay that back? Secondly, they had my house, they were getting nothing else from me.

 

However, I am due to get married at the end of February next year, and really don't want it hanging over my head, I am pretty sure they cannot claim anything that belongs to my current partner, and I have ensured that I am not on any joint credit agreements (except for a current account with barely anything in there, its used for paying bills), I am not on the mortgage, it is solely in my current partners name.

[newstarter]

Then i would say your ok just to be on the safe side string this out till the end of January,dont aknowledge or reply to any letters asking for payment or to agree payment terms,as i said sounds like its laready statute barred,but no harm being on the safe side.

[firstship]

The clock started to tick from the last payment you made on the mortgage,you say a DCA is the current chasing company,do they say they own the debt or just represent Halifax???????????As sillygirl1 states usually very inflated charges are added to the outstanding debt(I think we have both made this reply to another Cagger) I disputed the amount and asked for detailed accounts from companies and persons involved in the repossession,they couldnt supply and wrote of the debt eventually.there has also been a law change as indicated by SG1,in the above thread.Any way your debt is SBd so dont bother to respond....................FS.....................this does not mean that another DCA at some stage may chance his arm on a SB debt.

Edited November 22, 2010 by firstship
error

[Glasto Girl]

Hi damynx,

 

Contrary to firstship above, I would recommend that you DO respond to point out the debt is statute barred and as such you will not be paying and do not expect to be contacted again save to confirm that the outstanding amount has been written off. There are templates to this effect on CAG which should help.

 

The reason for doing this is that it should prevent you being harrassed by the DCA currently contacting you or any others in future. Once you have confirmed in writing that you will not be paying a debt because it is statute barred (and it is genuinely statute barred) it is a breach of the OFT debt collection guidance for the DCA or the original creditor to continue pursuing you. Admittedly I don't know whether the account this shortfall relates to was CCA regulated, you describe it as a second loan so it's quite likely that it was, so the OFT guidance may not be applicable but if the DCA is licensed by the OFT they will generally still want to abide by its guidance. It will also bring resolution to the issue and relieve you of the feeling that it is hanging over your head.

 

Just to clarify the other points in case there is any doubt, the twelve years which Halifax has to pursue you runs from the date of last payment or option 1 in your post above, so, from what you say, it should already be statute barred. If the claim was not statute barred and further action was taken Halifax would have no claim on any assets belonging to your partner.

 

GG

[firstship]

damynx.............the glasto girl reply is fine I have no argument with it,write by all means,and I very much hope it works and it is the last you hear of the matter,............best of luck...........FS

[damynx]

Thanks all for the reply

 

The next letter I get from them, they will get one of the "statute barred" letters that are examples on here

 

I *will* come back and let you know the outcome, and pass on the info to others needing to know on here

 

Many Thanks