Mortgage Query

[fairy9]

I need some advice in 2007 I bought a property with my now ex partner, it was a together mortgage through northern rock. Things got very rocky due to various events and the mortgage plus other joint loans / credit was not paid or small payments made, we split in 2010 – i filled out the necessary to remove my name from the property and promptly left to start over without thinking of possible consequences, but i dont have confirmation that this all went through.

 

It wasn’t until later on I found out how much my ex had actually had on credit in joint names and what the actual effect was, being stubborn I refused to pay anything and hardly any one contacted me about it. I made no payments to the debt or mortgages since early 2010. I have checked my credit report and I don’t have any CCJ just delinquent accounts,

 

Over the years I have had the occasional letter for a credit card in my sole name but I just ignored it, I know I have very poor credit and I have no interest in obtaining credit so I haven’t applied for anything since 2010.

 

I was curious as to what happened to the property, I know my ex left the property also (suffering with metal problems – he couldn’t cope) but its not showing as sold since I purchased it in 2007… surly it would have been sold by now?

 

Please can I have some advise as to what I should do? without alerting too many people.

[andrew1]

Welcome to CAG.

 

You can obtain details from the Land registry website as to who owns the property and any Charges on it.

 

http://www.landregistry.gov.uk/public/property-ownership

 

come back once you have found it and you can discuss the other issues thereafter...

 

Good luck.

 

A1

[fairy9]

hello thank you for your response,

 

I have now found this on my credit report - check my file not one i ususally use.,

 

current balance - Closed 28 February 2011 (balance £0)

The account has been satisfied. The payment status has been reported as in default.

account change - Account Closed

Default balance £72,891

Default date 28 July 2010

 

theres notice of a balance of -£20,756 i assume from this it was sold at auction? but nothing is noted on the land registery! i cant see where this balance of £20K has been passed too nothing current is on my lenders .. when will i get chased for it? lenders have 12 years dont they for mortgages?

 

thanks for any help

[andrew1]

Hi, what does the Land registry say ? Did you do the search? Only costs a couple of quid and is totally anonymous to search....that might/will tell you who the property is owned by.

 

It states on your Credit File the account has been satisfied despite the default balance so perhaps you are free of this debt...I think some digging is needed to get the full picture though first.

 

A1

[bhall]

hello thank you for your response,

 

I have now found this on my credit report - check my file not one i ususally use.,

 

current balance - Closed 28 February 2011 (balance £0)

The account has been satisfied. The payment status has been reported as in default.

account change - Account Closed

Default balance £72,891

Default date 28 July 2010

 

theres notice of a balance of -£20,756 i assume from this it was sold at auction? but nothing is noted on the land registery! i cant see where this balance of £20K has been passed too nothing current is on my lenders .. when will i get chased for it? lenders have 12 years dont they for mortgages?

 

thanks for any help

 

Hello Fairy9

 

If you follow Andrew1's advice you will be able to ascertain who is the current owner of the property. You can could also visit a property website such as http://www.zoopla.co.uk/ to ascertain when the property was purchased and how much it was sold for.

 

Thanks

 

Ben

[fairy9]

hello all,

right i have finally found out that the property in question was sold (land registry)

Jan 2011 for £57,000, therefore leaving a secured shortful of £15K obv excluding the monthly payments that were made, i cannot see on my credit file of where this debt has been sold too or the unsecured element of £7K.. both aspects are showing as satified. ive been reading that NR made a error with the together

 

thanks in advance

[andrew1]

hello all,

right i have finally found out that the property in question was sold (land registry)

Jan 2011 for £57,000, therefore leaving a secured shortful of £15K obv excluding the monthly payments that were made, i cannot see on my credit file of where this debt has been sold too or the unsecured element of £7K.. both aspects are showing as satified. ive been reading that NR made a error with the together

 

thanks in advance

 

When you say 'secured' shortfall' what is it secured on given you have lost the house?

 

can you also tell me what the 'NR made an error with the together

 

Just don't acknowledge the debt at any point, choose your words, but I if you are hoping to ignore this until it is Statute barred you could wait forever until the last week and then get some smart Alec correspondence which kicks the whole thing off back to square one, so be careful.

 

What and why are you expecting a rebate?

 

Just so we can catch up with your thinking fairy..

 

A1

[fairy9]

hello and thank you for your response,

 

on my credit report (noodle) it shows under closed accounts

Northern Rock (Asset Management) - Satisfied

opening balance £70,212

default balance £72,891

default date 28/07/2010

satisfied date 28/02/2011

balance £0

 

Northern Rock (Asset Management) - Satisfied

opening balance £7,269

default balance £72,891

default date 28/07/2010

satisfied date 28/02/2011

balance £0

 

property was repossessed and sold Jan 2011 @ £57,000

 

ive read previously that there was an error with together mortgages with the unsecured element and people were getting their loans redress refund/credits to account being issued.

 

i cannot see anything on my current credit report that any DCA is chasing what i still owe NR.

 

i havent had any correspondences as yet since leaving the property in 2010 from NR or any DCA chasing me to settle this account.

 

what is the best way to proceed?

 

thank you again for your help

[andrew1]

Okay, then I'd firstly do a bit of ground-work before contacting anyone directly who might spring any collection potential into action.

 

I've had a little scout around on the forums and on cag there is this thread, (but plenty more) http://www.consumeractiongroup.co.uk/forum/showthread.php?263465-Do-you-have-a-Northern-Rock-Together-Mortgage-Read-This./page5 and this seems to cover some quite interesting aspects of all things NR.

 

I hadn't previously got the jist of these 'Together' mortgages with the 2 parts to them so I understand now what you are discussing.

 

Looking at what refunds people appear to get (circa £1500) I am asking myself whether or not it would be fools gold to go looking for £1500 if it is likely to expose you to getting chased for the shortfalls.

 

Your credit file entry is compiled by NR and given to the rating agencies so if they are saying it's satisfied I'd be tempted to sit tight and say nothing although in Post 3 above you state that there is a -£20,756 Notice of Balance....is that still showing on your Credit file too?

 

The problem I see is if this debt is still sitting on files with NRAM is it gaining apace with interest making this an even harder balance to clear if or when they do decide to raise the issue? That's the risk in this predicament you have.

 

Without asking them, you're not going to know and I would tend not to want to do that, but that's a choice you have to make based upon what you know.

 

If this were me what would I do?

 

I might contact the FCA to ask them what happened to these kinds of shortfalls following the sale by NR to Virgin or into NRAM.

 

I'd also go into a new thread over on the NR threads and ask people if they have any experience of this kind of situation themselves. There are plenty of forums out there to pick up information, just as I have done this morning in 20 minutes, so I believe so long as you keep your anonymity you should get your answers and be able to make an assessment of any risks you may face.

 

There's nothing worse than worrying about money which might come back and bite you with some over zealous collection firm.

 

I believe you could defend any claims for interest from the time of sale of the property until the time they came asking as all they had to do was ask at the time and you could have dealt with the situation then - if they didn't, that's their problem not yours.

 

Secondly, it appears from my readings this morning that any mortgage shortfalls or arrears in this Together Account seem to attract interest at the personal unsecured loan rate as the balance is switched to the loan rate. If that's the case then the loan, in my opinion, would only have to be discarded for 6 years rather than the 12 yrs you were concerned about before becoming Statute Barred from collection.

 

If that is the case, and maybe someone else might like to confirm that for you as I'm not 100% sure, then if this were me - I'd sit back and let the time roll by until that 6 yrs since any last payment or acknowledgement of the debt had past then kiss it goodbye.

 

One should always set-out to pay for debts and loans which were provided in good faith. That's the morals here, but as a judge said to me once when I counterclaimed against my mortgage for a rather large sum and I said " I understand the morals your Honour of making such a claim" (it didn't feel right somehow claiming so much), but she interjected and said "Mr A1, we are not here to judge the morals, just the facts"...so I am telling you, the facts are all there and it is for the company to come asking you for this, if they don't and it ends up statute barred (check what the status might be re that balance, ie. is it a Regulated Mortgage Contract now or CCA or unsecured and Unregulated?) then that's their problem.

 

Hunt around for the answers as there are plenty of people by the looks of things who have experienced much the same thing. Just be careful not to go claiming if it's going to open up a can or worms or unless you wish to address the whole thing with NRAM (who appear to be responsible now) and then it's a matter of negotiating with them to settle the whole debt for a fraction of it's overall value if you are in a position to do so.

 

My guess is they've just written it off, but that's an uneducated guess and risky too to assume.

 

Good luck anyway. I hope you find your answers.

 

A1

Edited May 22, 2014 by andrew1
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