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Mortgage Shortfall - Will it ever be over?

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  • Mortgage Shortfall - Will it ever be over?

    Hello People
    Really hoping someone will be able to clarify the rather unfortunate situation I am in and have been in for over a decade?
    In April 2008 - The Halifax gained a possession order for my property - I was ordered to repay the sum of 250k - This I obviously could not do and do the house was sold at auction by the Halifax. Despite it having been valued at 290k and a mortgage given of 242k, they put a guide price on it of 120k and sold it at auction in London (when the house was in Yorkshire) From what I can gather, there was one interested party who bought the property for the guide price.
    Since then, I have been chased for the outstanding 140k
    I have queried this and argued the toss about the ethics of it all but to no avail.
    I have been told that because they obtained a money judgement, the limitation act does not apply. Surely this would be the case with all re-possessions though?
    Does that mean I am liable forever? I will never ever be rid of this cloud hanging over me? - Even criminals have their crimes 'spent' after a certain length of time
    They managed to get a charging order on a property that I already jointly owned (by sending all court papers to the re-possessed address where obviously I didn't live) when I came to sell this property, I was told the only obligation I had was to inform the original mortgage lender of the sale, my solicitor did this by writing to the Halifax, but they never responded (There was only 7k equity in the property by the way, of which I was liable to give them 3.5k I understand)
    So basically, will this ever be statute barred, and if so, is that 12 years from the date of the possession order or the date when I first defaulted on the mortgage.
    Please, please can someone help clarify things for me?
    Thank you

  • #2
    Hello and welcome,
    sorry I have no idea about how shortfall works, I think you may need to have a word with Di
    Diana Mayhew

    she is on holiday at the moment but does keep a check on line every now and again.
    woman is a mine of information

    Best wishes
    NW x
    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

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    • #3
      Originally posted by MissOptimistic View Post
      In April 2008 - The Halifax gained a possession order for my property - I was ordered to repay the sum of 250k - This I obviously could not do and do the house was sold at auction by the Halifax. Despite it having been valued at 290k and a mortgage given of 242k, they put a guide price on it of 120k and sold it at auction in London (when the house was in Yorkshire) From what I can gather, there was one interested party who bought the property for the guide price.
      Since then, I have been chased for the outstanding 140k
      I have queried this and argued the toss about the ethics of it all but to no avail.
      I have been told that because they obtained a money judgement, the limitation act does not apply. Surely this would be the case with all re-possessions though?
      Does that mean I am liable forever? I will never ever be rid of this cloud hanging over me? - Even criminals have their crimes 'spent' after a certain length of time
      They managed to get a charging order on a property that I already jointly owned (by sending all court papers to the re-possessed address where obviously I didn't live) when I came to sell this property, I was told the only obligation I had was to inform the original mortgage lender of the sale, my solicitor did this by writing to the Halifax, but they never responded (There was only 7k equity in the property by the way, of which I was liable to give them 3.5k I understand)
      So basically, will this ever be statute barred, and if so, is that 12 years from the date of the possession order or the date when I first defaulted on the mortgage.

      What a nightmare you've been through.

      Did you or anyone else challenge that auction sale price at substantially below market value at the time, although 2008 was the beginning of the Credit Crunch when house prices plummeted?

      I'll ask you some more questions when I'm next online, but can you say when you were last in contact with the Halifax and/or have they assigned the shortfall to a debt purchaser?

      Was this a voluntary repossession (where you handed back the keys)?

      Not all Possession Orders include a money judgment. Do you still have a copy of the Order/Judgment?

      It's true that CCJs don't go Statute Barred but if the Judgment Creditor (Halifax) want to enforce it after six years then they may need permission from the court, but that will depend on what has happened since.

      Was there PPI alongside the mortgage?

      Di
      Legal Disclaimer

      I am a Litigation Executive at Joanna Connolly Solicitors a firm which specialises in consumer credit. If you need to contact me you can send a message by clicking on my username or by emailing me at di@joannaconnollysolicitors.co.uk or by telephoning 0330 053 9340. Our initial advice is always free.

      Any posts I make on the AAD Consumer Forum are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you are unsure please seek formal legal guidance or contact your local citizens advice bureau at https://www.citizensadvice.org.uk

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