I currently have a firm chasing me for a mortgage shortfall, the mortgage was a joint mortgage, I haven't responded to any of the threats, will they be able to take my current house away, or do I have to agree the debt first. Will they be able to take me to court if I do not contact them?

-- Nicola Bradley (Nicola.Bradley@WDR.com), September 16, 1999

Answers

A court would have to agree the debt first, not you. But I know of no lender that has tried to take away someone's house. They can put a charge on it but that has to be court approved too. "Court approved" means you have the opportunity to show up in court and explain why the lender is wrong. Charge means they get a slice of the money when/if you sell it.

I know of no case where a charge has been placed on the house of a shortfall customer.

They will be able to take you to court whether you contact them or not. But... read the Do's and Don'ts pages in the Repossession section. There is a lot more to taking someone to court than serving the "writ" that starts the process. No lender wants to go through that process. The details are in the Do's and Don'ts section.

Lee

-- Lee (repossession@bigfoot.com), September 16, 1999.