Mortgage Shortfall : LUSENET : Repossession : One Thread

I have received a letter from a company called Halliwell Landau on behalf of Abbey National. I had my house repossessed 20 months ago and was under the impression that the shortfall would be met by the mortgage indemnity guarantee but looking at the letter this does not appear to be the case. I actually got this letter in redirection as I have moved and I am unsure whether to contact them or let them find me. Does anyone know what i should do. ALso how do they find you? When they catch up with me will they let me make a payment plan as I am self employed and can hardly even pay my rent just now. I have no savings or anything. I am now sick with worry and cant sleep and had a breakdown before and think i will end up with one again. I thought once I lost the house that was it but here we go again. Hope someone can help me.Please

-- Marion Allan (, March 16, 2002


You have a third choice in addition to the two listed by the poster below. That choice is to read this site - especially the entirety of Repossession section and to exercise the legal rights as discussed.

You will also find what answers we have to your questions.

Good luck,


-- Lee (, March 16, 2002.

Your MIG (Mortgage Indemnity Guarantee) does not mean that you are let off any shortfall. The shortfall is met by the insurers under the MIG who can then chase you.

Your choice is as follows:-

1. Respond to the letter telling them your circumstances and your new address. Let them take what action they see fit which might include making you bankrupt. The six years during which time they must sue you starts from when you respond. They might leave it for a few years and then come back to you in the hope your status has changed - if you again respond, the six years starts again.

2. Lie low - avoid contacting them for six whole years and you are free of the debt as it is statute barred - do not acknowledge the debt at all. Bear in mind however that if they do manage to confront you, interest will have risen and the debt may after say 5 years of no contact, have risen quite dramatically.

It is up to you to make an informed choice!

I wish you well with whichever choice it is.

-- David J. Button (, March 16, 2002.

If you were under the impression that the MIG would cover the shortfall then it's more than likely that the reason you gained that impression is because you were mis-sold the MIG in the first place.

In my honest opinion (based purely on myself being a victim of what I believe was the Halifax's deliberate gross negligence) I would go for the third option. The information on the Home Repossession site is there to help you.

Good Luck !

-- Tony Hayter (, March 16, 2002.

Thankyou for responding to me. I have looked through the site quickly and will go through it carefully tomorrow but I think that maybe I shouldnt get in touch with them I maybe should wait and let them get in touch with me. Re the MIG - our mortgage was originally with N&P and was taken over by Abbey when they amalgamated and N&P told us that this was to protect us if we ran into trouble and would cover the shortfall for us meaning that we would not have to pay but the building society the deficit but theywould still get their money. Thankyou again.

-- Marion Allan (, March 16, 2002.


Take notice of Lee and Tony - the Repossession section is full of valuable information and sound advice.

Ignore the silly talk of bankruptcy,it's ill-informed rubbish.

Good luck. Joy

-- Joy Harker (, March 16, 2002.

I also think you have the option available to complain about the MIG insurance policy being mis-sold to you;

1, Make a complaint to Abbey that you were mis-sold the MIG policy. Write to the Abbey Secretariat at Milton Keyneys and state that if they do not agree then you require a deadlock letter.

They will simply send you their complaint form, repeat your complaint on their form. There is a section on the form asking what settlement you require, cross it out or define that you expect the MIG policy to pay.

Don't be fobbed off, they may try to say that this is the responsability of the insurance company, they may say its nothing to do with them. Ignore these stupid statements by Abbey and insist on getting a deadlock letter so that you can take your complaint to the Financial Ombudsman.

2, after 8 weeks, or when Abbey supply a deadlock letter, complain to the Financial Ombudsman that you were mis-sold this MIG insurance. There is a FO complaint form on the FO web site, so you will have to repeat your complaint at least three times in all.

The FO will take several months, as many as six, to come back to you regarding this complaint.

But, I do think you have a valid complaint of insurance mis-selling. And this is the correct route to get something done about.

It costs you nothing and its well worth a try.

Good Luck.

-- Harry (, March 17, 2002.

And of course, while you are making a complaint to the Abbey Secretariat and the FO you can tell the Abbey solicitors to place everything on hold.

Good Luck.

-- Harry (, March 17, 2002.

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