can anyone give me some simple adivce please. was re-possesed around 2000 by abbey national. was contacted by eversheds not long after adviseing of £23000 shortfall. They then wrote to say they has halved it and I offered £50 p/m which they refused. I then moved and did not give them my new address ( still have an abbey national bank a/c so I wouldn't have thought I was that hard to find). They have not contacted me since. What should I do? I read on equifax that they drop of your credit file after 6 years but someone on here mentioned 12? Can they still demand payment after that time. And if I were to buy a house in the future could they claim the money back off that? Most of my others debts are all due off my file in 2 years time this is the one I need to sort out. Should I bite the bullet and contact them?

-- sarah furbey (sarahfurbey@yahoo.co.uk), June 01, 2003

Answers

Sarah,

I'm afraid the lender has 12 years in which to pursue you, usually from the 2nd or 3rd missed mortgage payment (subject to the mortgage terms & conditions), it might be from the first missed payment for example in some. If a Money Judgment Order was issued they (in theory) can pursue you indefinitely, so it's obviously important to find this one out. If you buy a property in the future without resolving this problem first the lender could place a Charging Order on it and claim their money back. I would not let this situation drift on as interest will still be accruing. I would follow the advice on the Home Repo's "Do's & Dont's" . Read as much as you can of the rest including previous postings. Put the lender to strict proof. Did they sell your property for a fair price? Was this a joint mortgage? In ANY communication with the lender it is essential to state that you deny liability and that you dispute their claim. Failure to do so can restart the 12 year limitation period. If it is a joint mortgage the other partner could acknowledge the alleged debt for both by making a part payment (see previous postings on this). Do not speak to them by telephone, get everything in writing.

Personally, I wouldn't make any offers for repaying on a monthly basis, this would cost you far more in the long run and interest may still continue to accrue. Furthermore, you would also renew the limitation period each month by doing so. It would be better to agree a one lump settlement (which should include any possible third party) if this is realistic.

If you have no assets, are on benefits, or have a low income I would seriously consider insolvency, this would also clear your other debts and give you a fresh start. Next year the Enterprise Bill comes into force which will mean that discharge is quicker, between 3-12 months, even now there are transitional arrangements in place. Sorry there isn't better news. Let us know how you get on. Good Luck.

I am not a professional advisor so please check all this with one, or even better two.

Mark.

P.S. If you're interested in the insolvency option you could contact Simon Wiggins (Debt Advisor) on his forum www.debtquestions.co.uk he is well genned up on this.

-- M Amos (idgroms@hotmail.com), June 01, 2003.

Can you tell me what a Money Judgement Order is?

Are you sure that interest still accrues?

Thanks

-- Lissa Jan (M3lissajan3@aol.com), June 02, 2003.

Lissa,

I would describe a money judgment order as being an order given by the court for the payment of money to the creditor by a debtor.

In respect to your second question my answer is "No", and is the reason I said 'may still accrue'. Take a look at my posting under "skipton...can anyone help,mortgage shortfall(interest)" recently. As far as I am aware the question of whether interest continues to accrue after the sale of the property still remains open, this question I understand was not clarified in the appeal court case Bristol & West v Bartlett. Not very helpful I'm afraid.

Mark.

-- M Amos (idgroms@hotmail.com), June 02, 2003.