Quizzes & Puzzles0 min ago
Bad Debt - Mortgage Repossession
Hi,
10 years ago I split up with my 1st wife where we both had a joint mortgage. Once I had left the area, I found out that she had the house repossessed.
10 years on I am getting letters from a debt collection agency working on behalf of a major high street bank who have not sold the debt on to them.
Is the limitation applicable to me? I thought after 7 years that the debt is written off. I have not responded to any letter that they have sent to my various addresses I have had in the last few years. What do I do? Also, if they do eventually catch up with me, is my current wife's wages taken into account?
Any answers would be welcome! Thanks!
10 years ago I split up with my 1st wife where we both had a joint mortgage. Once I had left the area, I found out that she had the house repossessed.
10 years on I am getting letters from a debt collection agency working on behalf of a major high street bank who have not sold the debt on to them.
Is the limitation applicable to me? I thought after 7 years that the debt is written off. I have not responded to any letter that they have sent to my various addresses I have had in the last few years. What do I do? Also, if they do eventually catch up with me, is my current wife's wages taken into account?
Any answers would be welcome! Thanks!
Answers
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Both you and your ex (or either of you) can be chased for the full amount of the shortfall (i.e. the amount by which the outstanding mortgage & other costs exceeded the sale price of the repossessed house).
Because it is a mortgage debt the statute of limitations is 12 years, so you are not there yet. However, there is a voluntary code operated by members of the Council of Mortgage Lenders (CML) that applies a 6 year limit in most cases. You should be able to find details on the CML site to see whether you come within the conditions. This may mean (if your lender is a CML member) that you are in the clear.
But if the lender obtained a money judgement (CCJ) from the Court when they repossessed, the 12 year limit does not apply - there is no limit in this case. The voluntary 6 year limit may still apply, but I am not certain about it.
Because it is a mortgage debt the statute of limitations is 12 years, so you are not there yet. However, there is a voluntary code operated by members of the Council of Mortgage Lenders (CML) that applies a 6 year limit in most cases. You should be able to find details on the CML site to see whether you come within the conditions. This may mean (if your lender is a CML member) that you are in the clear.
But if the lender obtained a money judgement (CCJ) from the Court when they repossessed, the 12 year limit does not apply - there is no limit in this case. The voluntary 6 year limit may still apply, but I am not certain about it.
You were the part owner of a house which you borrowed money to buy, committed to repay it and then walked away. This is not a victimless situation in many respects. The lenders used the savings of people who, because of activities of borrowers such as you, receive a lower return for their money. It's like Marks and Spencer having to add the cost of stolen stock to their prices so everyone else is disadvantaged. In these circumstances, there are many people on here who could help you but choose not to in view of your declared reluctance to comply with the rules of civilisd society. The lenders will have blacklisted you regardless.
Go here
http://www.registry-trust.org.uk/
So far as I know, searching this record does not result in information being passed to Debt Collection Agencies, but you can check with them.
http://www.registry-trust.org.uk/
So far as I know, searching this record does not result in information being passed to Debt Collection Agencies, but you can check with them.
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