i have been chased for a shortfall debt by b&b for almost 12 years. i have recieved threatening letters for last 3 years. most recent one says that they can persue because of a legal charge. can you please tell me what they mean by that. thankyou

-- helen smith (helen_780@hotmail.com), August 01, 2003

Answers

Helen,

If you have bought another property since the last one was repo'd they can place a legal charge on it to try and recuperate the alleged shortfall, see the earlier posting dated July 7th 2003....

"URGENT! How does a charge against a property work?"

WARNING - Don't forget that lenders/debt collectors read these posts. I've even had a case where Abbey National have gone into court with copies of some of my posts to someone!! Not that it surprises me.

Mark.

-- M Amos (idgroms@hotmail.com), August 01, 2003.

A legal charge is a notice registered with the land register which stops you from selling your house until you satisfy (pay) what the lender claims you owe them.

The lender can also apply to court to get a possession order (allows them to sell the property to claim their debt - subject to other charges in priority) if the debt remains outstanding with no proposal to pay - if this ever happens get immediate expert advice from organisations mentioned on this web site under who helps.

When a lender applies to the land registry the registry notify you in writing that the lender is claiming that you owe them money and that if you do agree you must contact them. The lender usually but not always obtains a county court judgement which is used as evidence to claim the charge with the land registry.

If you dont have any assetts (property) then this 'legal charge' comment means nothing and is purely a threat

Unfortunately this is all very technical and much more detailed than this explanation. From the brief outline you provide, no real advice can be given about your particular situation. If you need further info: -

Do you now own another house? and if so have you ever received letters from the Land Register?

Have you or any repressentative you chose to help you ever replied to their letters and if so was an offer of payment made or financial information provided to them without you stating the debt is disputed

Has the lender obtained a money judgement against you for the shortfall

When (approx) was the property repossessed

Was this repossessed mortgage a joint mortgage and if so has the other party made a payment to your knowledge.

You say you have received threatening letters in last 3 years, was the first letter after feb 2000 if it was read the CML policy information on this site.

-- who (who@idontwanttosay.com), August 01, 2003.