I am currently in negotiations with the Halifax and their solicitors Addleshaw Booth regarding a shortfall claim. I have SARNed the Halifax and they have obliged with a suitablly large dosier. Despite several requests they seem reluctant to supply a simple explaination of how the shortfall amount was arrived at. It would seem that the MIG payout is identical to the sum being claimed although they have not confirmed this. They have also received payouts from the two endowment policies on the mortgage amounting to £6000. Can anyone clarify the situation with regards to lenders that have received payment from the insurance company and are including this figure in the shortfall claim. Any advice greatly received.

-- Jim (giclees@hotmail.com), June 25, 2002

Answers

If the payout from the MIG insurers to the Halifax occurred more than 6 years ago then current opinion would suggest that this part of the shortfall claim is a simple debt and as such is now statute barred, unless you have acknowledged the debt in any way (see yesterday's new answers).

Somewhere in the dossier you have received there should be correspondence with the insurer in some form (not necessarily letterheaded paper) indicating the insurer's acceptance of the MIG claim and a record of the payment being received by the Halifax with a date.

Under subrogation rights a lender is allowed to pursue MIG payouts on behalf of the insurer, but unless your mortgage deed and conditions specifically make this a specialty debt I still think that it is a simple one since it arises out of an insurance contract. See recent postings on upcoming court cases etc. and the 6/12 year Limitations Act.

-- Gordon Bennet (arsenewhinger@hotmail.com), June 26, 2002.

Thanks for the info Gordan. The payout from the insurer to the Halifax is confirmed and is probably just short of six years as we speak. The amount they are claiming as shortfall is exactly the same as this payment so does this mean it is now as simple debt .

As I understand it, once a lender receives a claim, they are then chasing you for a simple rather than a speciality debt as in the case of a mortgage. I have assumed no liability to the debt to date but would like to know how to respond to the lender in light of this information.

-- Jim (giclees@hotmail.com), June 26, 2002.