Questions and Info relating to Property Issues inc, Charging Orders and Repossession

Moderators: TalbotWoods, JaneClack

By Nemo
#145010 Hi Simon,

We have spoke to you in July 2003, where you gave us some advice regarding a mortgage shortfall. Thank you very kindly for your advice at this time. This situation has now changed and we would be grateful if you could advise us on the best course of action.

Briefly, In late 1996/early 1997 our house was repossessed and sold below the market value leaving a shortfall of £4500.

After a few years we began, on a weekly basis, to receive letters asking for payment of a shortfall of £17k. On advice we were told not to talk or to correspond with them in any way as there is a time limit in which they have to claim these monies.

You, yourself concurred with this and provided us with documents from the council of mortgage lenders.

We have not entered into any correspondence with them since.

However, we have today received a summons to the county court to repay these monies.They are attempting to claim the higher amount of £17k plus interest of 8%.

Can they can do this? Please advise.
By wdm
#145733 I assume this was intended for the ask the expert section of the site? In any event mortage shortfalls can be pursued for 12 years. That's presumably why they are chasing this sum now before it becomes barred.

You can probably query the figure since it will include outrageous amounts to get to £17,000. Typically two thousand for clearing the house, thousands of legal expenses etc..

You need proper legal advice.
By cliff morrison
#152395 You will probaby find that the additional amounts that brought the balance up to 17K will be for all the costs they 'allegedly' incurred on the sale, plus unpaid mortgage payments and interest up until the date of the sale.

If the 8% interest they are claiming however, has been pleaded under section 69 of the County Court Act 1984, then the Court do not have the power to award it.

Look at your Mortgage conditions, there is probably a clause under 'interest' which states the Mortgagee will charge interest as well after as before any Judgment.

Rule 4 of section 69 of the County Courts Act 1984 clearly states that 'interest in respect of a debt shall not be awarded under this section for a period which, for whatever reason, interest on the debt already runs'