Of course he means legal Counsel(posted 7570 days ago)If Steve had meant CML he would have referred to COUNCIL of Mortgage Lenders or the actual abbreviation!
Anyway Steve,
Have you heard this from a reliable source or is it the legal rep / debt collector for your shortfall lender? :-)
I think you mean West Brom v Crammer - Jan 2003 (I hope so and not a newer case as this will all be a waste of time otherwise)
What the case actually meant is that the lender was entitled to pay the repod house proceeds to the interest amount owed before capital was paid, unless of course their terms and conditions of the deed stated otherwise.
ie. Sale proceeds after voluntary or legal possession £100,000.00 Interest owed and costs for sale of property £62,000.00 Capital (amount borrowed) £120,000.00
the £100k pays the interest and costs owed first (as they DO only have 6 years under the Limitation Act to claim these so they collect them now rather than later) so you are left with only £38,000 to repay the capital borrowed of £120k!
Meaning they have 12 years from the 'cause of action' (see other parts of this site about this ) to pursue you for the outstanding capital balance of £82,000
Watch out for debt collectors and solicitors claiming balances which include interest from over 6 years ago (date of sale of property not cause of action). These wont stand up in court if you have not acknowledged within the 6 year period (unless a money judgement was obtained) - even if you have acknowledged after this time its time statute barred.