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Response to 12 Year rule?

from M Amos (idgroms@hotmail.com)
This has been taken from the Council of Mortgage Lenders Site:

In addition, from 11 February 2000, lenders who are members of the Council of Mortgage Lenders have agreed voluntarily that they will begin all recovery action for the shortfall within the first six years following the sale of a property in possession. Anyone whose property was taken into possession and sold more than six years ago, and who has not been contacted by their lender about recovering any outstanding debt will not now be asked to pay the shortfall. The Association of British Insurers supports this approach on behalf of the mortgage indemnity insurers.

Does this time limit apply to every case?

The new time limit does not affect anyone who is already -

adhering to alternative payment arrangements for the shortfall debt; or

who has already been contacted by the lender, even if the initial contact was made with them by the lender after six years from the date of the sale of the property in possession. The six year limit only refers to beginning recovery action and does not affect a lender's ability to recover the shortfall debt over a longer period. If there is evidence of mortgage fraud, the new time limit will not apply.

Mark.

(posted 7983 days ago)

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