Debt Questions

I have seen lots of references to the 6/12 year rules about chasing up repossession debts, and it surprises me that people quite often seem to receive unexpected demands for repayment many years after the event.

Do these long delays only occur if the borrower has successfully managed to cover his/her tracks and thus evade 'capture' (!!) ?

If a borrower 'co-operates' with the repossession, and maintains contact with the mortgage lender throughout the process, is it still possible that several years could elapse before the lender finally announces a settlement figure, and demands repayment, or is it normally a much quicker process?

If a borrower has a house repossessed they are liable for any loss incurred by the lender. The only sure way I know to stop this occurring is to go bankrupt while in the house and have the Official Receiver include the property in the Bankruptcy.

It is advisable to include a negative equity property in a bankruptcy as the outstanding mortgage gets written off. If a couple want to keep the house the OR will normally agree to sell the debtors beneficial interest to the spouse for a £1.

Thanks for the reply. I think I am fairly well 'up to speed' on the whys and wherefores of bankruptcy. I am trying to find out more about how the process of repossession 'unfolds' (what is the actual sequence of events, and how long does the process take).

As I have posted elsewhere, I am not yet in any kind of default situation, so the question of bankruptcy does not yet arise.

But I am currently facing a drastic cut in my income, which means that I will soon become unable to continue with my mortgage payments (I have no other debt). I will shortly be moving into rented accommodation.


Q.1 If I stop making my mortgage payments, and ask the mortgage company to repossess the house, will they accept from me a 'token' payment of, say, £200 a month in order to prevent them harrassing me while the repossession and sale goes through?

Q.2 Once repossession proceedings have started, who is responsible for council tax, insurance and property maintainance? (what happens if the roof gets damaged in a storm?)

Q.3 At what point does the actual ownership of the property change hands?

Q.4 How much time is likely to elapse between the start of repossession, and the arrival of the 'final bill'?


Until I know how much money the Mortgage lenders want from me, (and so long as they are not harrassing me) I might as well delay the start of bankruptcy proceedings.

If the delay extends into a couple of years or more, then I will be retired and receiving only a state pension and, hopefully, housing benefit.

Lenders deal with repossessions differently, some are far more aggressive even in these times when the Government have asked lenders to be lenient. Northern Rock were apparantly just as aggressive after the Government bailout.

If you are in a certain repo scenario at a future date you are doing the right thing to discover all the pros and cons, because you need it off your back when you retire.

I have read many real life experiences and it would seem it can take up to two years or longer for a house to be repossessed but on average 12-15 months. If you base your theories on the lower end of the scale you won't be far off the answer.

You seem to be fairly positive about it so, Good Luck hope you don't get too much hassle.

You will not receive housing benefit if you have a mortgage. Housing benefit is only for those in rented.

I could be in the same situation (thanks mr pay day company taking mortgage money) but have my home up for sale. if you look at form n123 question 8 it clearly states that they cannot go for repo if the house is up for sale or in the process of being sold. I woud think the courts would take a very dim view

my house was repossessed whilst it was up for sale