house repossession?

Question

hi, just wondering (on behalf of someone else) if you have a house repo'd and when the mortgage company sell it on and fail to get enough to cover the debt, how many years is the previous owner held liable for the bad debt? I always believed it was seven years, someone else says twelve years now, and someone else is convinced it is 15years!! please tell me if you know.. thanks very much.. xxx

acermill ..are you in the UK? sorry i forgot to say where i was.. (UK) but i never heard that before.. great now have a fourth figure!! ;-)

Answer 1

in cases where an indemnity insurance is in place (indemnifying the lender ,in case the morgage holder defaults on payments) the lender chucks you out and claim on the insurance.In case there still a short fall they will try coming after you.they did that with me,writing letters to a previous address saying ...we need to speak to him for a very serious matter,in big bold writing.I told the people at the house if anyone calls tell them I went to the brasilian jungle.I never replyed to the letters of the lender as they were send about 6 years after the reposession.I believe a debt ceases to be a debt 6 years from the last time it was asked for,which ,in plain english means,if you are ''untracable '' for 6 years ,that's it !!!This was brought on as a rule when someone we all have to thank for took abbey to court about it and won !!! cheers to him,google for more info !

Answer 2

My husbands aunt and her husband were in your situation many years ago, he didn't want to file for bankruptcy so he had his house repo'd he paid a small amount each week right up until the day he died and then the money owing to the lender was taken from any insurances/life policies. To be honest if it were me I would file for bankruptcy I know you have trouble borrowing when you do this but this is only for 7 years not your entire lifetime.

The Very Best Of Luck To You and Your Family What Ever Your Decision x x

Answer 3

Your account is held on your credit file for six years from the time you receive the County Court Judgement (CCJ). After this you can apply to have the account removed from experian and equifax, but this should be done automatically. As for bankruptacy, laws in the UK have changed, it used to be 7 years now your only bankrupt for 1 year and then the debts are wiped, however, you can not have anything on credit and all assets have to be presented to the court for which you are filing bankrutcy with.

Answer 4

Iv never heard of a mortgage company chasing after the repossession cos they get their money back otherwise they wouldnt sell it for the amount it is sold for

But....for arguments sake::-

The figures that are being thrown at you are.......7 years (actually it is six years and one day) where A debt can no longer be enforced......12 years where the same applies but where property is involved it is 12 years

Answer 5

Take this from someone who has been there, the mortgage company can pursue the debt for twelve years.
They can request the money after that, but will have a hell of a job when you tell them to whistle!

Answer 6

Now I know if it happens to me.
Problem is you don't lose the house only. You lose the legal fees paid, stamp duty at one percent of purchase price, you lose the cash deposit which took such a long time to save. So eevrything will amount to a loss of many tousand of Pounds. It's a total DISASTER for the family !!

Answer 7

HI IZO, Just asked my hubby and he says the debt will go on for ever and the only way to avoid it is by going bankrupt or having an IVA (Individual Voluntary Arrangement) with your creditors.

Answer 8

Can u document for some variety of financial ruin to attempt and save ur domicile or vehicle?? i've got easily under no circumstances had the two taken away yet i think of they might can take u to court docket..especially in the event that they are damages to the vehicle and that they might't get the money returned it fairly is owed!! Do bypass and confer with who ever is approximately to repo and probably u can artwork some thing out with them. set up some diverse form of value plan. for my area if i became approximately to lose my domicile and vehicle i'd document financial ruin and that they could no longer take the two of them.

Answer 9

in the US, statute of limitations;
7 yrs. if the mortgage firm stays hounding you, offer to sue them
for harassment and record their
conversations.

and send a letter to the BBB.
if necessary, find out where they
are and start leaving messages
on the employee's cars.

Answer 10

Unless you file bankruptcy to extinguish the debt, it stays until the person who owes it DIES, and then it may be collected from the estate of the deceased. There is no statute of limitations on debts. The statutes of limitations only affect the means one is able to use to collect the debt.