What is a Mortgage Shortfall?
You may have had your home or property repossessed. You may have returned the keys to the property to your mortgage lender. You may still be told you owe money. This is what is commonly referred to as a “mortgage shortfall.” This occurs when the amount the property in question is sold for is not enough to cover the outstanding mortgage or other debts secured against it.
The money still owed in this circumstance is referred to as a “mortgage shortfall.” This amount also takes into account monthly installments and interest included in the debt while the property is for sale. Indeed, until the completion of the sale, you, as the homeowner, are liable for any and all costs. Another factor to consider is legal and estate agency fees, which the homeowner is also liable for.
Mortgage Shortfall Timeline
The length of time for which you can be pursued for a debt is set out in the Limitation Act of 1980. In this, rules for the length of time a creditor can pursue, or “chase,” you for an outstanding debt are outlined. This timeline has been subject to several court cases, with the Court of Appeal deciding the limitations as they currently stand for a mortgage shortfall.
Mortgage capital refers to the sum of money originally borrowed. If you have a debt of this amount, the lender in question has twelve years to pursue the debt in court. If you owe interest, your lender can continue to charge interest after the sale of your home or property. In regards to this specific form of mortgage shortfall debt, the lender has a six-year timeline in which to use court action.
Mortgage Shortfall Help
As with many things, time is of the essence with a potential mortgage shortfall. Act now before your hand is forced. Or, even worse, the decision is in the hands of your lender. If you are precipitating a mortgage shortfall, it is imperative that you receive the correct help. Immediate Bank Claims is on hand to provide emergency assistance.
If you are confused about any issues in regards to a potential mortgage shortfall, we would be happy to speak with you. Our dedicated consultants specialize in cases of mortgage shortfall. We can make you aware of your options. We can even negotiate with the banks on your behalf.Call us now to discuss your options.
To reach our London-based Head Office, dial 01216881811. Alternatively, you can also email our team on enquiries@immediatebankclaims.co.uk
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Mortgage Arrears in the Press:
Money Advice Services discuss a mortgage shortfall: