Sorry something I should have mentioned is that I would not buy any property until you determine if a shortfall still exists. If you go ahead and it transpires you DO still owe this shortfall they could put a charge on your property.(posted 7256 days ago)You will have to establish the situation re the 12 year rule. You could also get a copy of your credit file which might then reveal your whereabouts to your original lender. However if you are at a stage where you want to move on with your life and stop hiding you will have to face this full on.
Your credit file (from Experian and Equifax) might show up the alleged debt and then you can work from there. Be very careful if you decide to contact the mortgage lender and ask for advice on the site regarding writing any letter to approach them re settlement. Do not go in with the max you can afford first time....they will probably refuse it and want more. Don't tell them anytiing they don't need to know especially about your plans to buy your council house. The fact you are in a council house you could use to demonstrate to them that you have no assets etc etc.
Be very careful how you go and post on the site for advice EVERY time you are not sure about something. SOMEONE will keep you right.
Good Luck
Moira