Mortgage Shortfalls Guide How to deal with Mortgage Shortfalls?

My property has been repossessed

This is most likely due to the fact when the property has been sold; the money acquired has not been enough to pay off any secured loans or the mortgage in full to the lender. Within these debts can contain any interest or monthly payments that have accumulated during the selling of the property. You are also accountable for all the legal as well as estate agent charges up until the final selling.

The unsettled funds are known as a 'Mortgage Shortfall'.

Areas Covered

  • Is there a time frame on which the creditors can try and retrieve the money?
  • What is the length of time for Mortgage Capital?
  • What is the length of time for owing interest?
  • What initiates the time period?
  • 'Cause of Action' regarding Capital:
  • 'Cause of Action' regarding Interest:
  • 'Cause of Action' regarding when the keys have been handed over:
  • Through making instalments to the interest debt can I increase the time period?
  • Is there an extension of time if I recognise and accept the debt?
  • Can I use the Limitation Act 1980?
  • Which time limit is applicable to me?
  • Can I use the Council of Mortgage Lenders Policy?
  • What are the steps if the mortgage is in joint names?
  • Should I clarify from my creditors how much I am in debt?
  • What information should I ask for?
  • What does the Data Protection Act allow me to do?
  • What is Mortgage Indemnity Insurance or Mortgage Indemnity Guarantee?
  • Does the indemnity help me against the creditors?
  • What if I disagree with the payment figure the creditor has achieved?
  • You may have a claim if you agree with any of the following:
  • What is the correct way I should make a complaint?
  • What if my shortfall debt is not statute-barred?
  • Can I make an installment agreement with my creditor?
  • Is it possible my creditor will withdraw the debt?
  • Is it possible to make a Full and final settlement plan?
  • Are there any implications to my credit rating?
  • Is it possible for my creditors to pursue court action?
  • Can my creditors take my judgment to High Court?
  • Could Bankruptcy be an option?
  • What is a Debt Relief Order?

Download Mortgage Shortfalls Guide