26 Feb 2015

A question about : Debt from 14 years ago

Hi all just wondererd if any one could help!
About 12 years ago my mum and dad got divorced, my dad didn't keep up payments on the house and then it got reprossed. Never mind it happens about 2 years ago the morgage company sent a letter to my mum saying when the house was sold at auction the final price didn't cover what they owed on the morgage now they wanted the remainder of the money around Ј27000, As you can see waking up to that in the morning post didn't go down to well. My mum contacted the company and they said they would accept Ј20 a month for life or a final settlement of Ј3000. She offered Ј2000 they rejected. Apprently my dad never responseded to the letter and cause it was over 10 years ago the company cant do nothing (IS THAT TRUE?) so now my mum has a debt of Ј50000. My mum has not got a penny to her name she has bought up 5 kids so she has only been able to work part time but my youngest sister has just turn 16, now she wants to go full time. Can the company still chase her for the money talk about a kick in the teeth look forward to hearing from you

Best answers:

  • This quite tricky. This is the law on how long you can be chased for a debt.
    As you can see, the lender has 12 years, so it looks like your mum is caught by this. Your dad is still on the hook until the 12 years expires - you could "shop him" to the lender if you know where he is
    Call the National Debtline for help 0808 808 4000
  • My partner's mum has been caught by this one and is waiting for a date on a court case. There was no way that she could pay as her partner had just left her and closed down their business. Leaving her with nothing, as she can't work due to a disability. Her case is a little more complicated for various reasons, but you're definately not alone. In her case again they waited the maximum amount of time before making any contact...even though she has been living at the same house for 12 years...and they had sent her letters about other matters. And they say they didn't know where to find her...yeah right.
    Good luck
  • rchddap1
    I hope she's getting support and advice on this. If not, call the National Debtline.
    Good luck
  • She's getting a lot of help and support from a solicitor etc... She's actually been going through this for a while now and when the date comes through...it won't be her first time in court.
    From what she's told me the repossesed house was sold via a 'back hander' for less than it was worth....which doesn't impress the judge one bit....and the fact that they have known where she lives for the past 12 year, but haven't bothered to contact her until now...doesn't impress him either.
    She's a very strong woman and will give them hell, but its now just a case of waiting for things to happen. I think that she is waiting for something to either go before a higher court (can't remember which one specifically...my brain is melting today). I do knwo that its one of these courts or bodies that will get around to talking about it...eventually...possibly. No point in worrying until then.
    Even if it comes down against her, she doesn't have very much to give them anyway.
  • rchddap1
    I genuinely wish you all the very best of luck. The Courts are there to protect us, too ... not just allow lenders to get away with shoddy practice. Will be routing for you.
  • Found this on Debtline hope it helps anybody in this mess
    Mortgage lenders who are members of the Council of Mortgage Lenders (CML) have not yet changed their policy on recovering mortgage shortfalls in light of The Court of Appeal decisions above. You can still argue the policy to your lender as a point of good practice.
    From 11 February 2000 the policy is as follows:
    The CML says anyone whose property was repossessed and sold and who has not been contacted by their lender within six years from the date of the sale will not be asked to pay the shortfall.
    If your lender has already contacted you before 11 February 2000 then it appears they will continue to try and recover the shortfall even if your house was repossessed and sold more than six years ago.
    If this applies to you then you should read the factsheet for options to negotiate with the lender. You could try arguing that it is unfair for the lender to keep trying to recover the money from you if your house was sold over six years ago. Point out they have already accepted that they have a "commitment to fair and sympathetic treatment for people for whom possession cannot be avoided" and have already limited the recovery period for new cases.
  • Thanks Debt_Free_Chick. Everyone is supporting her at the moment, but I'm sure that it'll all work out in the end. She's not the sort of person to give up without one hell of a fight. Besides she's getting old, and is worried about what would happen to her teenage daughters if she should kick the bucket. So she is currently defending the inheritance or future safety / security for her daughters. Never a good idea to come between a mother, her kids and their future security. I'm keeping my eyes open for fireworks.