Final demand before court proceedings on mortgage shortfall

[Kev12]

Hi,

I voluntarily repossessed a property back in 2014, I've now had a final demand for payment of over £23,000 for the mortgage shortfall or court proceedings will be requested.

The mortgage was with GE money on an interest only basis as I'd bought the house back in 2007 as a favour to realease my mums partner at the time from the property so they could purchase another larger property together, cut a long story short their relationship ended the market crashed and I was stuck with the house worth a lot less than the mortgage and with structural problems and nothing more than a verbal agreement that they would deal with property and sell it. Young and naive with a good heart I'm still overshadowed by this black cloud.

i couldn't rent as it wasn't on a buy to let mortgage and I lived with my wife and my 2 children in a property owned by my wife, the local council started to charge double council tax on empty properties so I was paying 2 mortgages equivalent to 3 council taxes all my household bills as my wife didn't work with having very young children, it got to the point I was borrowing of Peter to pay Paul to keep above water but it all spiralled out of control and left me broke.

What are my options as I don't want this to affect my young family (my wife and two girls) anymore than it has to. I've ignored all debt agencies since giving up stressing over money in 2014 and now I've no intention climbing back into that stress ball ever again nor do I want court letters though? Please try advising me and any help is appreciated.

[Debt Camel]

Re: Final demand before court proceedings on mortgage shortfall

Apart from this debt, what other debts do you have?

Are you still renting?

[Kev12]

Re: Final demand before court proceedings on mortgage shortfall

No my wife has a mortgage on the house. The debt unsecured all defaulted in 2014 to the amount of £56k but the mortgage nor the shortfall shows on my credit file

[Kev12]

Re: Final demand before court proceedings on mortgage shortfall

Sorry 56k included the shortfall

[Debt Camel]

Re: Final demand before court proceedings on mortgage shortfall

Bankruptcy is probably your best option to get rid of this huge amount of debt.

If you didn't provide any of the deposit for your wife's house and if she is paying the mortgage, hopefully, there will not be a question of whether you have any beneficial equity in the house so it will be safe if you go bankrupt. You need to talk to a debt adviser about your situation in details, including your wife's house. National Debtline are good.

[Diana M]

Re: Final demand before court proceedings on mortgage shortfall

I would first explore the circumstances surrounding how the mortgage/loan was taken out in 2007.

Who was the lender at that point in time?

Did you take out the mortgage through a broker or intermediary (G. E. Money did not lend direct to the public)?

Was there PPI attached to the loan?

Who is currently chasing you for the shortfall and has it reached the solicitors stage?

Di

[Kev12]

Re: Final demand before court proceedings on mortgage shortfall

Thank you Debt Camel, I was hoping to avoid that route. With being the bread winner I will need to rebuild my credit rating to get a bigger family home in the future,

[Diana M]

Re: Final demand before court proceedings on mortgage shortfall

I was hoping to avoid that route. With being the bread winner I will need to rebuild my credit rating

Please see my post # 6.

Di

[Kev12]

Re: Final demand before court proceedings on mortgage shortfall

Hi Di,

it it was a broker who played the figures to get me the mortgage, the mortgage was with GE money, unfortunately I didn't pay much interest because it wasn't really for me, I was begged by mum as her partner was struggling to sell it and they really wanted another house. We had an agreement that as long as had nothing to do with it and they sold it in two years when the early payment penalty was lifted, they split up before then and the housing market crashed. I battled for years but it got financially too much.

Moriartylaw is the ones who've sent me the final demand on behalf of Merligen Acquisitions ltd

[Diana M]

Re: Final demand before court proceedings on mortgage shortfall

I voluntarily repossessed a property back in 2014

I think you need to look at this issue too.

Was the property subsequently sold at auction (possibly below market value) or was it advertised/marketed at the 'going rate'?

Did the mortgage have a MIG (Mortgage Indemnity Guarantee) which might have meant that the lender would be paid any shortfall and then the insurance company chase you?

G E Money products usually did although your loan may not have.

Di

[Debt Camel]

Re: Final demand before court proceedings on mortgage shortfall

Thank you Debt Camel, I was hoping to avoid that route. With being the bread winner I will need to rebuild my credit rating to get a bigger family home in the future,

It is possible to get a mortgage 6 years after bankruptcy.

I am being realistic here. You basically have three options:

- go bankruptcy (or go for an IVA - but that would cost you more than bankruptcy and it is NOT better for your future mortgage chances)

- try to ignore the debts and fight them through the courts as the Claims pop up. You are going to have a very stressful next few years... This claim is just the first - you are likely to get them for the rest of your debts as well. You may manage to defeat some claims but the chance of doing this for most of your debts is simply unlikely. If you get a CCJ in 2019 for a debt you defaulted on in then you wouldn't have any chance of mortgage before 2025.

- start repaying the debts. How long would it take you to pay off 56k of debt? For most people that would be longer than 6 years...

[Diana M]

Re: Final demand before court proceedings on mortgage shortfall

it it was a broker who played the figures to get me the mortgage, the mortgage was with GE money
. . . .
Moriartylaw is the ones who've sent me the final demand on behalf of Merligen Acquisitions ltd

So the debt has been sold on. You need to establish whether there are any assignment issues.

I would immediately send a Subject Access request to G E Money Home Lending to get the full history of this account from inception.

Di

[Kev12]

Re: Final demand before court proceedings on mortgage shortfall

Yes Di I had to pay for mig to get the mortgage, I'm unsure how they went about selling it as this it's only now I've started receiving correspondence.

- - - Updated - - -

Hi debt camel, if I get a ccj would then claiming bankruptcy wipe off the ccj?

[Diana M]

Re: Final demand before court proceedings on mortgage shortfall

Yes Di I had to pay for mig to get the mortgage, I'm unsure how they went about selling it as this it's only now I've started receiving correspondence.

My feeling is you need to do your homework before you throw in the towel assuming you have time.

Have you been sent a Letter Before Claim?

Di

[Debt Camel]

Re: Final demand before court proceedings on mortgage shortfall

Hi debt camel, if I get a ccj would then claiming bankruptcy wipe off the ccj?

Yes it would.