My ex-wife and I had a joint mortgage. Upon our divorce she was on social and I went to live in America with a new wife. During the 5 years I was in the US the house was reposessed. I have now returned to the UK and found out that the house was repossessed. What should I do? I'm happy to pay the debt but would like some advice as to how this is done and what is the best course of action. I do not believe in having a debt and would like to clear my records. However I do not want to be taken for a ride and pay more than is fair to pay. If someone could offer some advice I would really appreciate it.

Chris

-- Chris Deakin (chris@deakin-family.com), January 15, 2003

Answers

Chris,

I think you should follow the advice on the Home Repo site i.e. put the lender to strict proof, make them proove they sold the property for a fair price. You will then be in a better position to negotiate. Because it's a joint mortgage you'll be liable for 50% of the alleged shortfall. Check out too whether the shortfall is now statute barred or falls under the CML 6 year voluntary code.

Mark.

-- M Amos (idgroms@hotmail.com), January 16, 2003.

Chris,

I gave you some duff gen on the 50% liability bit. The following comes from a solicitor:

Joint borrowers are joint and severally liable-either can be sued for the full amount. Part payment by a seperated/ex partner does start time running afresh (limitation period) for that person and all other joint debtors. This is specifically stated in s31 (7) LA '80. A part payment affects and binds all others liable incl guarantors. An acknowledgment by a joint debtor only affects the person making it and not any other joint debtors.

Mark.

-- M Amos (idgroms@hotmail.com), January 21, 2003.

My friend was repossed in similar circumstances and has just checked out a new company called loancheck, who reckon up to half of repossessions could be illegal practice or simply avoided. You check your own mortage online for free, it tells you if you have been overcharged and if you have, you may actually be owed money by them! My friend was repossessed last year but they can go back six years. It's worth a go. Ostrichonline.co.uk offer the servcie.

good luck

-- davidmarshall (davidmarshall2@hotmail.com), February 05, 2003.