Peter,(posted 7750 days ago)There are a couple of points which Tracey appears not to have mentioned. Firstly, the limitation period is 12 years (time in which they can get you) this usually starts from the 2nd or 3rd missed mortgage payment. So for example if you stopped paying your mortgage in November 1990 they may not now be able to pursue you, because they will be barred from doing so (you need to check this with a solicitor though, as it may also depend on what is written in the terms and conditions of your mortgage). Secondly, the Council of Mortgage Lenders have a voluntary 6 year code which states:
"In addition, from 11 February 2000, lenders who are members of the Council of Mortgage Lenders have agreed voluntarily that they will begin all recovery action for the shortfall within the first six years following the SALE of a property in possession. Anyone whose property was taken into possession and sold more than six years ago, and who has not been contacted by their lender about recovering any outstanding debt will not now be asked to pay the shortfall. The Association of British Insurers supports this approach on behalf of the mortgage indemnity insurers.
All lenders which subscribe to the Code have now agreed to adhere to it whether they are a CML member or not. You can check whether a lender subscribes to the Mortgage Code by phoning The Mortgage Code Compliance Board on 01785 218200."
Peter,I would give the number above a ring and check whether this applies in your case. You can go to your local CAB, or contact the National Association of Mortgage Victims, alternatively contact a local solicitor (preferably one who doesn't deal with conveyancing) to get all this checked out by a professional, and receive more direct help.
Look at the good advice on the Home Repo pages, particularly under the Do's and Don'ts.
You need to make the Lender prove the alleged debt. Is the 19,000 they say you are liable for the correct figure. How did they arrive at it? Did they sell your property for a fair price? Ask for the valuations on the property at the time of sale, and try and get independant ones yourself to check whether they've ripped you off or not. If you believe they have, complain to your local MP. I would ask for his assistance anyway. If he's not helpful find another who is.
The MIG isn't worth the paper it's written on, it was just one big con. Basically, you paid for the lender to be insured NOT yourself, so the insurance company can chase you if they have paid out to cover your lender's losses. I would complain about this to your MP too.
You also need to find out whether a Money Judgement Order has been issued by the court. If it has, then (in theory) the lender can chase you indefinitely.
Be very careful at this stage not to acknowledge the debt in any way. If you write to the lender/debt collector, or if any person does so on your behalf (even a solicitor), make it clear that you deny liability and do not admit the debt. If you or a solicitor or advisor working on your behalf does not make this clear then the 12 year period can start afresh from the date of that acknowledgement. This also applies to making a part payment. It's a very important point particularly near the end of the 12 year period. If the 12 years are definitely up you've no worries.
Finally, if you wish, please sign the mortgage shortfall e-petition on 'www.petition-them.com' under 'Help Mortgage Shortfall Victims'.
Hope this helps, if you have any further questions just post them up.
Good Luck, Mark.