I remember seeing on this site at some point a reference to mortgage deeds that are not signed by the lender. I have recieved a copy of mine and its is signed only by me, my ex-wife and two witnesses who were personal friends. If anyone can point me in the right direction I would appreciate it. Thanks Tim

-- Tim Heath (tim_n_heath@hotmail.com), February 16, 2001

Answers

Tim,

This was reported in the Financial Mail on November 19th 2000, as part of its 'Call Off The Mortgage Hounds Campaign' (which has featured quite a few Home Repo Page readers!).

I'll quote the passage to you in full:

"Christina Rundle, a legal advice expert and former barrister, urges borrowers to fight back [against shortfall claims]. She says they should insist on seeing proof of the debt before paying it. 'Lenders seem to hold all the cards but that is not necessarily the case,' she says. 'In some situations borrowers may be able to prove that lenders are not entitled to chase them for debts.' According to Rundle, who lives and works in Taunton, Somerset, mortgage deeds that were not signed by both the lender and the borrower could prove to be invalid. Since the Law of Property (Miscellaneous Privisions) Act of 1989, mortgage deeds have included a clause that entitles lenders to chase borrowers for debts for up to 12 years. However, many banks and building societies did not bother to sign the deeds themselves, Rundle says. 'I know of two cases that rest on the validity of the mortgage deed. There could eventually be light at the end of the tunnel for thousands of borrowers,' she adds."

Two things I would add:

1. It is far from certain that the clause which allows lenders to chase for up to 12 years is actually present in all mortgage deeds, especially those pre-1993 (See the HRP Repossession section, the 6/12 years discussion.)

2. Try to determine whether or not the lender still retains the original mortgage deed, and not just a copy.

all best,

-- Eleanor Scott (eleanor.scott@btinternet.com), February 17, 2001.