Shoosmiths - Mortgage Shortfall

[robbie73w]

Hi all.

Ive received a letter from Arrow Global telling me they have instructed Shoosmiths Solicitors to chase me for £19440 for a Mortgage Shortfall for a Mortgage i had with Northern Rock. They say the date of the debt is April 2007.

I have absolutely no knowledge of any debt to Northern Rock, nor have i had any correspondence whatsoever relating to any debt until today.

I owned a house in 2003 and sold it again in 2005. The mortgage for this was with Northern Rock. As far as i am aware my solicitor at the time dealt completely with all finances relating to the house sale and settlement of the remaining mortgage to Northern Rock.

Now suddenly i have received this letter stating they are chasing me to recover a debt for a Mortgage Shortfall?

Like i have said i have never had anything from anyone regarding a debt to NR. So where has this come from and what should i do about it?

I did call Shoosmiths to query the letter and they said they would look into it.

I would be grateful if anyone could offer some guidance

[warwick65]

Re: Shoosmiths

Hi

I suppose the question would be, did you sell for more in 2007 than you bought in 2005

Can you remember the approximate amount of the mortgage
[MENTION=87380]Diana M[/MENTION]

It may be just a case of mistaken identity but better to nip these things in the bud

[robbie73w]

Re: Shoosmiths

Thanks for the fast reply.

I can remember contacting NR at the time to ask for a settlement figure. The house was then put on the market at a price to cover the settlement plus all solicitors and estate agent fees.
I don't remember there being any concerns from the solicitor acting for me at the time. In fact if i remember correctly it all went through pretty smoothly hence my concern

[MIKE770]

Re: Shoosmiths

contact the solicitor who did the selling paperwork Tuesday ans get the facts !?

[robbie73w]

Re: Shoosmiths

Thats the problem mike, i have no idea who it was i used as it was 12 years ago. I have a vague recolection of which estate agent i used but doubt they would keep records of a house sale from 12 years ago.
Ive even searched the Land registry to see how much i sold the house for but for some reason the sale is not shown on their site

[charitynjw]

Re: Shoosmiths

Hi robbie73w, welcome to LB

Was this a 'Together' loan/mortgage?

[robbie73w]

Re: Shoosmiths

Ive no idea. It was so long ago i dont recall any details of it

[charitynjw]

Re: Shoosmiths

I'm not sure exactly what transpired with the different NR loans/mortgages, but if it were me I'd start by seeing if it was hived off to NRAM.
If so, SAR them for any details which they may have.

[robbie73w]

Re: Shoosmiths

Ive managed to find the Land registry entry for the sale, which went through on the 5th of May 2005, more than 12 years ago but im no further forward trying to find out which solicitors i used for conveyancing.
Ive emailed the estate agent i used to see if they have any archives relating to it as they may have a record of the solicitor involved other than that i guess im playing the waiting game with Shoosmiths

[MIKE770]

Re: Shoosmiths

If you owe mortgage capital
Mortgage capital is the money you originally borrowed. For this part of a mortgage shortfall debt, the lender has 12 years to use court action to make you pay. This is under section 20 (1) of the Limitation Act.
If you owe interest
Mortgage interest is the interest you were charged to borrow the money. Your lender may also charge interest after your home is sold. For this part of a mortgage shortfall debt, the lender has six years to use court action to make you pay. This

[robbie73w]

Re: Shoosmiths

Thanks Mike. I assume that the 12 years are up then regardless of where they think this alleged debt has come from.
Ive had no contact from anyone and the last payment made to them would have been from my solicitor during the sale in May 2005.

Would it be a good idea for me to call Shoosmiths on Tuesday to discuss this or should i leave it for them to contact me

[MIKE770]

Re: Shoosmiths

Refrence Your letter xxxxxxxxx dated xx xxx xxxx

You have contacted me regarding the above account, which you claim I owe. I do not admit any liability for the alledged debt.

In 2005 the property was sold and proceeds distributed by the solicitor, Land Registry shows sale date in question:-

No knowledge as you what you refer to is known.

For information if there had been any shortfall/outstanding monies due then after advice the following has been brought to my attention as common knowledge:-

The Limitation Act 1980 Section 20(1) states the following.

“No action shall be brought to recover (a) any principal sum of money secured by a mortgage or other charge on property (whether real or personal);…after the expiration of twelve years from the date on which the right to receive the money accrued”.

Also, the Council of Mortgage Lenders (CML) has agreed that with effect from 11 February 2000, anyone whose property was repossessed and sold and has not been contacted by their lender within six years of the date of sale, will not be asked to pay the shortfall. Whether or not you are a member of the CML, this policy is good practice and I urge you to follow it.

I also refer you to the Financial Conduct Authority’s 'Mortgages and Home Finance: Conduct of Business sourcebook (MCOB)', which states that if a lender decides to recover a mortgage shortfall debt they must make sure the borrower is informed of this within six years of the date of the sale.

Please confirm in writing that the matter is now closed and that you will not make any further contact with me about the above account.

I look forward to hearing from you.

Yours faithfully

[robbie73w]

Re: Shoosmiths

Many thanks Mike. Much appreciated

[MIKE770]

Re: Shoosmiths

You may have a debt in joint names, or want to write to your creditors together.

[undine]

Re: Shoosmiths

It appears that Arrow/Shoosmiths have purchased a parcel of old debts recently,and are chancing their arm.If you sold the property in 2007 and the shortfall they refer to is Capital Only you need 12 clear years before Statute Barred comes into play,it is 6 years if it (Shortfall) is Interest `Only.Should you decide to contact them make sure in large letters you state THIS LETTER/EMAIL IN NO WAY ACKNOWLEDGES THE ALLEGED DEBT and then demand all documententation regarding the shortfall,along with all documents relating to payments made