Firstly, I would recommend you read as many previous postings as you can on the Q&A site and read/follow the "Do's & Dont's on the Home Repo page too. Sarn the lender/insurer/debt collector and put them to strict proof. Be advised lenders read this site.(posted 7360 days ago)A lender/insurer has 12 years under the Limitation Act 1980 to chase you (see Bristol & West v Bartlett - July, 2002). The 12 years usually runs from the 2nd or 3rd missed mortgage payment, however, you need to check your mortgage terms & conditions to be certain, it could be, for example from the 1st missed mortgage payment. In respect to interest the limitation period is 6 years (see postings on Home repo Q&A for more details). See also the posting ***The 12 Year Limit and Endowment Mortgages*** , if you defaulted on the endowment earlier than the mortgage repayment it could mean the clock starts running even earlier.
You need to check that the alleged debt hasn't been acknowledged in any communication with the creditor (a part payment can acknowledge the debt as well) because this can restart the limitation period. Be careful not to acknowledge the debt by stating on any communications that you do not acknowledge the debt , that you deny liability and that you dispute the debt(phone calls cannot acknowledge the debt). If the 12 years are up then you cannot acknowledge the debt afterwards. If you have acknowledged the debt you may be able to resile, but that, as far as I know, has never been tested in court. If you use statute barring as a defence this needs to be pleaded as part of the defence it is not automatic. If this mortgage was a joint liability one then be aware that any Ex joint partner may have acknowledged the debt for all parties by making a part payment. if the lender has a Money Judgment Order (MJO) then, in theory, they can chase you indefinitely, although I've never heard of this happening, yet.
You also need to check to see whether the CML 6 year voluntary Code (see below) applies in your case.
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."
See CML webpage for full explanation: www.cml.org.uk/servlet/dycon/zt- cml/cml/live/en/cml/pub_info_dept
Take a look at these two websites that should help:
http://www.osborneclarke.com/publications/text/mortgageshortfall.htm
http://www.propertylawuk.net/mortgageshortfall2.htm
Finally, Curtis Solicitors are well known for using Statutory Demands which require a fast response, take a look at the section about this on the Home Repo site.
Please be advised that I'm not a professional advisor so please check all this out with one. If you have any further queries just post them up. Good Luck.
Mark.