Response to bradford and bingley with drydens my husband terminally ill what can i do

Firstly, I would recommend you read as many previous postings as you can on the Q&A site and read/follow the "Do's & Dont's on the Home Repo page too. Sarn the lender and put them to strict proof. I have a copy of a Sarn if you wish. Be advised lenders read this site.

A lender has 12 years under the Limitation Act 1980 to chase you (see Bristol & West v Bartlett - July, 2002). The 12 years usually runs from the 2nd or 3rd missed mortgage payment, however, you need to check your mortgage terms & conditions to be certain, it could be, for example from the 1st missed mortgage payment. In respect to interest the limitation period is 6 years (see postings on Home repo Q&A for more details). See also the posting ***The 12 Year Limit and Endowment Mortgages*** .

I would check that the alleged debt is not time barred under the Limitation Act 1980, a professional would need to look at your paperwork to be sure. You also need to check to see whether the CML 6 year voluntary Code (see below) applies in your case.

The Council of Mortgage Lenders have a Voluntary 6 year code which states:

"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.

All lenders which subscribe to the Code have now agreed to adhere to it whether they are a CML member or not. You can check whether a lender subscribes to the Mortgage Code by phoning The Mortgage Code Compliance Board on 01785 218200."

See CML webpage for full explanation: www.cml.org.uk/servlet/dycon/zt- cml/cml/live/en/cml/pub_info_dept

If the above doesn't help then I think the best course of action is to negotiate a "Without prejudice" settlement.

Be careful not to acknowledge the debt by stating on ANY communications that you do not acknowledge the debt, that you deny liability and that you dispute the debt. If you make an offer to settle make sure you also include "Without prejudice" on the letter and state that you are making the offer on an "ex gratia" basis. If someone acts on your behalf then ensure you ask them (in writing) not to acknowledge the debt on your behalf (and keep a copy of the letter). Telephone calls cannot acknowledge the debt. If this mortgage was a joint liability one then be aware that any Ex joint partner may acknowledge the debt for all parties by making a part payment. An acknowledgement/part payment can restart the 12 year limitation period. Finally if the lender has a Money Judgment Order (MJO) then, in theory) they can chase you indefinitely. It is unlikely that an MJO would have been issued in a voluntary repo case.

Take a look at these two websites that should help too:

http://www.osborneclarke.com/publications/text/mortgageshortfall.htm

http://www.propertylawuk.net/mortgageshortfall2.htm

Please be advised that I'm not a professional advisor so please check all this out with one, for example with the Mary Ward Legal Centre or the National Association of Mortgage Victims. If you have any further queries just post them up. Good Luck.

Mark.

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