I bought a house in gorton, manchester 5 years ago for £19500. RBS gave me a 100% mortgage on this even though the valuation was £18500. (Yes call me stupid but I was 19).

I moved out nearly three years later because I inherited a ready made family, and estate agents then valued it at £6-8000. I couldn't keep up the mortgage repayments and after 6 months of being empty they contacted me to say they were changing the locks. I have heard nothing off them since relating to repossesion or how much it was sold for, but i know there have been people living there. Is it actually classed as repossessed?

I am now a housewife and my current partner is self empoyed, although he wants to stay out of it obviously.

I got a letter from unidebt collections demanding an Income/expenditure form to be filled in. I sent it back offering £10 per month as on paper I have got more going out than I have coming in. I am on WFTC. I am worried now as I have read on here not to send in these forms! Although I suppose I admit liability for the shortfall as the house could not possibly have fetched anywhere near what I paid for it.

They wrote back to me saying this was not acceptable, and I must reply within 14 days to avoid court action. I am getting really fed up over this and could not bear to be paying x amount for the rest of my life to try in vain to clear this debt.

Where do I turn now? I considered declaring myself bankrupt but as I have no other debts (apart from ongoing credit cards etc) I am not sure this would be a good idea. I could possibly get a loan for a couple of thousand to offer a settlement. But what is my first step? It would help if Iknew what exactly they were chasing me for!! Are they obliged to tell me this?

I have read the repossesion tips on this site but it all looks so complicated, eg preparing a case against the lender etc, I would be grateful for replies in simple terms if possible as I am still trying to get my head round all these legal terms!!!

-- katie (katheard@netscape.net), September 22, 2002

Answers

They are well within time for sueing you. I would ask what they are seeking from you as a primary point and refuse to enter negotiations until they account to you for that figure.

It looks as if they repossessed the house - you might not have known about this as papers would have been served at the house address - check and find out with the people who are chasing you.

When you have all the facts, you are then in a position to make an informed choice as to your next step - and when you have all the facts, come back to this forum and seek further advice.

An offer in which you raise by lending a sum to offer them might work, and bankruptcy is an option but which may affect any equity you have in your current home. But you need to find out how much is at stake before you make any decision.

-- David J. Button (davidjohnbutton@supanet.com), September 23, 2002.