Looks like my old lender Nationwide are coming after me after 13-14 years from default (not sure of date, never been disclosed) for a shortfall of 36k, threatening court action. A MIG was in place. After approx 6 years they issued a summonds but nothing came of it. Question is does that reset the 12 years rule? I myself have never communicated with them or their agents. The only contact was via a solicitor at the time of summons and another solicitor when they restarted sending demands two years ago. I did get them to a small full and final settlement but couldn't raise the cash in time. My current solicitor then talked me into sending them some info on income etc although I resisted. Could this solicitor have restarted the 12 year rule once the first 12 years had elapsed? Will start the fight tomorrow info demands/SARN/MIG etc, any advice would be welcome.

-- John Day (anon@atpl.net), November 30, 2003

Answers

John,

I believe a number of solicitors and debt advisors have inadvertently restarted the limitation period for mortgage shortfall victims, the only way you can check this is by getting a solicitor or debt advisor who knows what he's talking about to check through the paperwork. If this is the case, I doubt if you'll have any comeback, they'll probably have it all stitched up. Furthermore, the issue of what exactly constitutes an acknowledgement is not always clear cut, and may have to be decided in court. From what I've heard the court usually comes down on the side of the lender, don't expect the law to be fair, call me cynical if you like but I think more often than not it depends on whether the judge has shares in that particular BS, or is a member of the "old boys' club". All written communications with lenders or debt collectors etc should always state that you do not acknowledge the alleged debt, that you dispute it and deny liability. Any offers should be made "Without prejudice" and on an "ex gratia" basis. Failure to do the aforementioned can restart the limitation period. It should also be mentioned that if the mortgage was a joint one an ex partner may restart the limitation period for both by making a part payment, though cannot restart it for the other by a written acknowledgement (see previous postings on this as there is some argument on this).

Lastly if a Money Judgment Order was issued the lender (in theory) may be able to chase you indefinitely, however, a lender would need to return to court where more than 6 years has passed since issue to obtain leave to enforce, but where more than 6 years has passed before the lender tries to enforce a judgment by execution against goods, it has to show the court that there were good reasons for the delay. I suggest that you check it all out with an experienced legal professional/s, Ahmed Butt from the Mary Ward Legal Centre or NAMV for example. Good Luck, please let us know how you get on.

Mark.

-- M Amos (idgroms@hotmail.com), November 30, 2003.

Thanks Mark, any ideas on the 12+ restart and the summonds effect on the 12.

Thanks...John.

-- John Day (anon@atpl.net), November 30, 2003.

Drydens, Nationwides solicitors have, this morning, adviced Nationwide to serve a starutory demand on me. Can I stop this by refuting the debt and liability for it and asking for documentation to prove the lenders claim? There has been no judgement against me, can they just say you owe this, pay or else without legal confirmation that the debt is owed?

-- John Day (anon@atpl.net), December 01, 2003.

John,

I suggest you take a look at the "Do's & Don'ts" under "After they contact you and demand cash:" and "12.What to do if you receive a Statutory Demand" Note:You have 18 days from the date of the letter to get to court and file an application for set aside. I would contact Ahmed Butt from the Mary Ward Legal centre or NAMV for specialist advice. If I get any more on this I'll pass it on to you.

Mark.

-- M Amos (idgroms@hotmail.com), December 02, 2003.

can the lender put a charge on your property without telling you, and do they have to go to court to do it. can they stop you selling your house at the last minute too??

-- katie davie (katemum@worldnews.com), December 05, 2003.

I won!! £3,000 full and final for a £36,000 shortfall. Just follow the advice on this site and be hard with them. You hold the cards not them, It's those greedy b*ggers that want something. I think it was lets see the MIG then and "I'd sooner spend the money with a solicitor than give it to you" that finally made them fold

Good luck to all.

-- John Day (repeater@atpl.com), September 20, 2004.

Well done John! I'm glad this is over for you.

-- Chris (chris@anon.co.uk), September 21, 2004.