I had an endowment mortgage with the Abbey National, unfortunately I could not make the payments so returned the keys allowing a voluntary repossession in 1992. I had no arrears.

The property was subsequently sold by the Abbey National for £35,500, the market value at the time being £54,950.

Four years later I received notification that the Abbey wished me to pay a shortfall of £29,566.48.

My mortgage was £58,735.69, I had made repayments to a total of £30,908.78.

The sale plus repayments comes to £66,408.78. In addition I believe (original figure never disclosed) that the Abbey received £10,000 via the MIG.

They have now put the matter in the hands of company solicitors EVERSHEDS. I lost everything in 1992 and the Abbey made more than I originally borrowed. The solicitors state that the repayments I made amounted to interest and the outstanding amount is capital.

I have no way of repaying anything, a settlement figure of £3,500 is now acceptable to them or they will commence legal proceedings. This is the third time that EVERSHEDS have threatened legal action.

Am i liable and for what, can anyone assist?

Thank you

-- Patricia Bolger (Trish@dbolger.freeserve.co.uk), October 28, 2002

Answers

Eversheds offer a lot of threats. Under Law the insure of the MIG can claim the costs back under subrogation. However, the is a six year limitation rule on this figure. The Mig is not a contract between you and anyone it is the bank. So the insurer only has 6 years to claim it. I would keep this bullet until you need to fire it off (but hold out as long as poss). Has the insurer contacted you? first 6 years? Did you reply?

Also When was the last contact you made with your bank? Was this within the first 6 yrs, as I think Grabby Nat are on the C M Lenders 6 year voluntary rule. REMEMBER acknowledgement is YOU WRITING to the bank in concern to the DEBT! Under the Limitation Act Grabby are allowed to claim the money back (12yrs), interest is at 6yrs.

I will help you on this case as much as poss. Be STRONG and be prepared for the threats.

Geoff

-- Geoff Winters (Geoff-winters@supadooper.com), October 28, 2002.

Patricia,

Make sure you read my earlier posting on Aug 3rd entitled 'Mortgage Shortfall Limitation -12 years or 6 years ?' re an appeal court case 'Bristol & West v Bartlett' where it was decided that the 12 year limitation period runs from the 2nd/3rd missed payment on the mortgage, subject to what may be written in your BS terms and conditions. It may well be that your shortfall is statute barred. You also need to check if you have acknowledged the shortfall as this can restart the limitation period from the date of the acknowledgement. Check it out with a good solicitor (one that hasn't got to worry about biting the hand that feeds him/her). The NAMV & CAB also offer free advice. Check out too (as Geoff told you) the voluntary 6 year code angle. If the shortfall is not statute barred or you have acknowledged the debt make sure you read the Home Repo site guidance from top to bottom, particularly the section on Do's and Don'ts, you will need to get the building society to prove that the shortfall is correct, i.e. have they sold your property for a fair price? etc. You may have to SARN them to find this out. Fortunately, as you handed back your keys a money judgment order shouldn't have been issued. Try and get your local MP involved too.

Hope this helps and Good Luck,Mark.

-- M Amos (idgroms@hotmail.com), October 29, 2002.