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

Moderators: TalbotWoods, JaneClack

By rossi46
#471761 Hi All,

Ive had a couple of properties repossessed and its got to a stage that they are after the negative equity in the property.
I have obviously moved and I have not gone bankrupt,the mortgage companies are obviously trying to trace me but I have not heard of anything and the property got repossessed around a year ago now.
What im worried about is if they are sending mail to the address that got repossessed and getting debt collectors and if in worse case scenario going to court and then sending enforcement officers to that address, if it gets to that stage and they find that im not there can they just come to my new address without any warning if they trace me nor with any court papers to my new address and make me pay or if they do trace me do they then have to go back to court and send court papers to me at my new address?
User avatar
By JaneClack
#471762 For a creditor to get a county court judgment ie "take you to court", all they have to do is send a letter to your last known address. Given this is the repossessed property they are unlikely to do this as they know you are not at this address as they repossessed it.

They can and will try and trace you and they have six years to try and reclaim any interest outstanding and 12 years in law to reclaim the capital before it becomes "statute barred". When a property is repossessed the monies go first to the interest outstanding and if there is anything over it goes to the capital - basically, as they have a longer time to try and claim it. The Council of Mortgage Lenders to whom the majority of lenders belong have an agreement that they will not chase after six years.

However if you had a Mortgage Indemnity Guarantee - nowadays a Higher Lending Charge this is an insurance you would have paid for which ideminfies the mortgage lender not you so could mean an insurance company chasing you for this.

If you are still using credit they can check credit files to trace people as previous addresses and mortgages would appear on that for six years.

I have seen cases where someone has bought a property with someone else further down the line and the original creditor has then gone for court action to get a charging order on the new property.

Basically however, if you are now in rented accommodation with no assets to protect you could look at bankruptcy or even often a payment scheme when you have worked out a budget.

I would suggest you contact one of the firms you will find if you click on the red writing - they all offer free, confidential and no obligation advice and they would be able to offer you more detailed advice.

I am going to send a couple of factsheets to the email address you have provided to see if they will throw any more light on your specific information. We can give a general response but this is not the place to publish all the details any adviser would need.