confused about recovery of secured loans

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I am confused and hope that someone can help.House repossessed 10 yrs ago.Contacted by main mortgage lender a few years ago and finally settled large shortfall for a small sum,no problems with that.

However there was a secured loan(regulated)which was the original cause of the repo.,we heard from them just after repo,asking us to make settlement offer.I had no money and told them so,and the property had not even been sold,and they have not contacted since. I thought that they had 12 years to persue,and so we could be persued still,however the NAMV said that because it was a small regulated loan(even though it was secured) that the only had 6 yrs.I want to believe this but it contradicts other postings on this site.I tried to contact namv but they must be very busy and have not replied.

Also could costs be added to any amount.I know that there was no equity in property and so the debt could not have been cleared with the prceeds of the sale.The whole thing was rather sad because the amount outstanding on the loan including arrears was well under 3000.00.Thankyou for any help.

-- jack (jrw2901@aol.com), January 27, 2004

Answers

Hi Jack

The limitation period for all mortgage/seccured loan shortfalls is, I am afraid, 12 years.

This seemed to be the result of Bartlett v Bristol and West, although it was not specifically stated, and was confirmed in the post Bartlett case of Thompson v Scottish Equitable.

You will probably have acknowledged the debt when you responded telling them you couldn't pay them if this was in writing and you made no specific denial of liability. If this is the case, the 12 years would have started to run on the date of the acknowledgment, and will have 2+ years still to run.

I can't locate the Thompson case reference but have it at work where I am back on Monday.

It might be useful to know who the lender is - the original agreement should really be checked to see if it complies with the complex technical requirements of the Consuner Credit Act.

Perhaps you could post or email me the name of the lender.

All the best

Guy

-- Guy Skipwith (guy@skipwith107.freeserve.co.uk), January 29, 2004.


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