I had loan (£30,000) on the value of my property (£42,000)with Nationwide B.S. in around 1990 and could not pay the mortgage. My home was repossessed the following year and sold for £15,000. I next heard from the lenders in around 1995 and was still unable to repay the loan and had no assets. I am now a pensioner and am able to buy a retirement flat, but am scared that the debt would be chased and that I may lose my home as a result. I have telephoned the Nationwide, but they say that they have no record of my debt. They will not put this in writing. Can anybody tell me how to find out if the debt is still owing. Should I go to a solicitor or some other person for advice.

-- Brenda Orsler (brendajorsler@btinternet.com), August 26, 2003

Answers

Brenda,

I think the first thing you should do is SARN the lender/s. I have a copy of a SARN letter if you like. If they then can't produce the documents in connection with the loan/mortgage then I can't see how they could pursue you and take you to court to recuperate any monies. You may also find that the shortfall is now statute barred, see previous postings on this. Be very careful that you or anyone working on your behalf does not acknowledge the debt and restart the 12 year limitation period. All correspondence should have something like the following wording "This letter does not constitute an admission of any liability and is not an acknowledgment of the debt" and add on "Without prejudice" at the top too. I suggest you read as many earlier postings as you can on this site and also the "Do's & Don'ts". You can contact the NAMV or the Mary Ward Legal Centre for professional advice. Good Luck.

Mark.

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