Fighting Northern Rock to NRAM 2005 to 2013

[DontStickYourHeadInTheSan]

My first post and I going to let it all out. Please read. Not sure if there is a lesson to be learnt but I need guidance.

 

In 2004 I took a mortgage with Northern Rock via an independent broker who I was working for as an employee.

 

3 months later I got into a dispute with my employer (I asked for payslips) who then decided that 100% of my previous years income was in fact all loans and that I was never employed. No one got pay slips and his family were all accountants. My employer stopped paying me and remarked my mortgage was fraudulent and that I would go to prison. Apparently I purposely took out a £1800 a month mortgage without any income. I then had solicitors appointed against me by him. He did this to other employees.

 

5 months after obtaining my mortgage I was unable to make any payments. I informed Northern Rock why, and told them why payments had ceased and that I was panic stricken that my mortgage could be fraudulent. They did nothing. So I went to the FSA. They visited my house and I showed them the evidence of my mortgage and the subsequent evidence that all my income was loans. The FSA said there is nothing they can do. I went to the Police who sent someone to meet me from their fraud division. Eventually the Police replied in a letter and said only my lender could make the complaint as they were the 'victim'. I sent the letter to Northern Rock and asked them to do it. They refused.

 

This whole process I just mentioned took almost 1 year. My a+ credit rating was decimated. I was on medication for stress and anxiety plus having counselling. My health literally collapsed. My partner left me. I just did not know what to do and I curled up into a ball. My ex boss even had his solicitors write to me saying if I took another job it would be 'breach of contract'. I ended up on Incapacity Benefit (never been on benefits before) therefore my lender received interest payments from housing benefit.

 

Because my lender did nothing and my mortgage circumstances were unresolved I deteriorated. I did not know what to do so I gave everything away and fled. I was homeless and looking back, mentally ill. This was early 2007.

 

In late 2007 I went back to my house. It had been empty and was full of leaves but other than that nothing - it was like I never left. No locks changed; nothing. So I moved back in.

 

Having no referencable background to get a job with I decided to start a business. It did well and eventually I began to make all-I-could-afford-payments each month to Northern Rock. Within 18 months I was making full 1800pm payments. Then the recession bit and I could not sustain the full payments. It didn't take long for me to end up back on meds again. Of course Northern Rock still did nothing about how my mortgage was obtained or the arrears. It was like they just ignored it.

 

So after fighting the good fight I decided in October 2011 to hand the keys back. I had just become a father and decided I needed a conclusion to this. The arrears were over £100k so the house was in negative equity which was why I could not sell it privately.

 

The house was sold I and ended up owing a shortfall of 126k. I have not acknowledged this debt or paid anything towards it. I feel Northern Rock (now NRAM) had a responsibility to me and to report a crime, they always choose not to. I campaigned for years for them to do so - even when I was making payments each month. I really suffered through all this - credit rating is still wrecked, I get chronic anxiety even now and I am still trapped by it all.

 

I refuse to go bankrupt. Why should I? I did nothing wrong and did everything that could be reasonably expected of me to report it.

 

Anyway, thank you for reading all this. My question is can I get this debt written off? My mortgage was for £315k, the house sold for £325k, the 126k that is outstanding is all interest. If anyone can help I would be grateful and can return the favour - today I am a self employed web designer and marketer.

 

 

Btw, HMRC investigated both myself and my employer. My employer wound up his company so HMRC said it was not in the tax payers interest to pursue him. No company to pursue so no tribunal procedure either.

[BankFodder]

Mortgage debts last for 12 years, I'm afraid.

 

It's a mess but I do think that your best move would be to consider bankruptcy. You say - why should you, you have done nothing wrong - but bankruptcy isn't like that any more. It is an opportunity to bring closure and to walk away and start again from zero.

This is what your employer has done. You should do the same. Your creditors will hound you and they don't care that you may be honest or that you are trying your best.

You have had no help from them in trying to bring your employer to book - and the authorities seem to not to be interested either.

 

Go and see a bankruptcy councilor - after a year you will be a free person and you can start to build your life again and care for your new family

[DontStickYourHeadInTheSan]

Yes its a hell of a mess. For my mortgage shortfall debt, its the interest that i owe, not the capital, so the lender has six years to use court action to make me pay. This is under section 20 (5) of the Limitation Act.

[f16]

If NRAM take it to court. ..... Then what ??

 

Anything you "build up" for you and your family in the next X years will get taken away.

Not worth it.... Worrying every time the phone rings, post arrives or a knock at the door.

[BRIGADIER2JCS]

Surely the Council of Mortgage Lenders has agreed that its members will not pursue mortgage shortfall debts after 6 years of no relevant contact/payment in line with other consumer credit debt.

[goodatresearch]

Iimitation period is 12 years for mortgages but according to council of ml you can argue that it is unfair to pursue more than 6 years after the sale.

[BRIGADIER2JCS]

Iimitation period is 12 years for mortgages but according to council of ml you can argue that it is unfair to pursue more than 6 years after the sale.

See post 5 above!

[ims21]

This is the CML item on shortfalls and the six year timeing

 

http://www.cml.org.uk/cml/consumers/guides/debt

 

As the sale went through in late 2011 by all accounts, there is still a long way to go for the six years to expire so Bankfodder's observations above are worth consideration.

[goodatresearch]

6 years for mortgage interest and 12 years for mortgage capital I believe.