Scottish Law re Shortfall debtsgreenspun.com : LUSENET : Repossession : One Thread
In Scotland a lender must start action to recover any mortgage shortfall within a period of 5 years.
The 5 years starts to run as per the specified date on the contract (mortgage deed) or the relevant default date.
As long as the 5 years has passed without a relevant claim having been made the obligation is extinguished, providing that the debtor has not acknowledged the alleged debt.
The term "relevant claim" means that:
an action has been raised in a Scottish Court or
a petition for sequestration has been lodged or
any form of dilignce has been carried out in enforcement of the obligation.
A letter from a Lender to a Debtor advising a shortfall would not count as a "relevant claim"
This area of Scottish Law is covered by the Prescription and Limitation (Scotland) Act 1973
I hope this helps someone!
-- Moira (Anderston828@aol.com), November 08, 2003