Mortgage Shortfall (which isnt a shortfall)*** Written Off***

[rdm2006]

I have been contacted today by shoosmiths to repay a mortgage shortfall.

 

In 2008 they began repossession of my home at the begining of the case i owed £71,000 to HSBC and £7,000 to EPF (EPF was acquired by HSBC after i had taken out the loan).

 

So total owing was £78,000. The property was sold at just over £82,000 in 2010 under the mortgage rescue scheme.

 

Shoosmiths are asking me to repay a "Mortgage Shortfall" of £8,000

 

This is not a shortfall, it is court costs (which i have asked for a breakdown of on many occasions and not received)

 

I believe that calling this a shortfall is fraud they would have only six years to claim court costs by calling it a shortfall they have increased that to 12 years.

 

I know that there is a clause in the contract allowing them to add costs to the mortgage but surely this clause must be unfair if it only allows an act which would otherwise be unlawful.

 

I am currently unemployed so they have no chance of getting it anyway.

 

I would like to stop them calling this a shortfall.

 

They also spent 6 months arguing (HSBC and EPF which by this time part of HSBC) who was going to show this so called shortfall. charging more interest whilst they did it.

 

 

I have to reply in 14 days

 

any views or ideas

[rdm2006]

Just in case they say that the court costs were deducted from the sale of the property and the remainder used to pay off the mortgage would they be allowed to do this?

[BRIGADIER2JCS]

Just in case they say that the court costs were deducted from the sale of the property and the remainder used to pay off the mortgage would they be allowed to do this?

 

 

Hi RDM,

Responding to your PM.

 

 

Will read through and get back.

[BRIGADIER2JCS]

I have been contacted today by shoosmiths to repay a mortgage shortfall.

 

In 2008 they began repossession of my home at the begining of the case i owed £71,000 to HSBC and £7,000 to EPF (EPF was acquired by HSBC after i had taken out the loan).

 

So total owing was £78,000. The property was sold at just over £82,000 in 2010 under the mortgage rescue scheme.

 

Shoosmiths are asking me to repay a "Mortgage Shortfall" of £8,000

 

This is not a shortfall, it is court costs (which i have asked for a breakdown of on many occasions and not received)

 

I believe that calling this a shortfall is fraud they would have only six years to claim court costs by calling it a shortfall they have increased that to 12 years.

 

I know that there is a clause in the contract allowing them to add costs to the mortgage but surely this clause must be unfair if it only allows an act which would otherwise be unlawful.

 

I am currently unemployed so they have no chance of getting it anyway.

 

I would like to stop them calling this a shortfall.

 

They also spent 6 months arguing (HSBC and EPF which by this time part of HSBC) who was going to show this so called shortfall. charging more interest whilst they did it.

 

 

I have to reply in 14 days

 

any views or ideas

 

 

 

Hi Rdm,

 

 

Are shoosmiths acting on behalf of HSBC?

 

 

When did the repo take place in 2008 (day/month).

 

 

I reckon you will need to SAR HSBC on this, one request will cover the original mortgage and the subsequent loan acquired by them.

 

 

Dear Shoosmiths,

 

 

I refer to your letter dated xx.xx xxxx., in regard to an alleged " shortfall" debt arising allegedly from a mortgage with HSBC.

 

 

Please not I have no knowledge of any such " shortfall " debt and refute any liability.

 

 

If Shoosmsmiths intend to pursue this matter forward I require it to produce unequivocal proof of how this has arisen and how the amount claimed has been calculated.

 

 

I will allow 7 (seven ) working days from the date hereon for a response if no response is received within that time scale I will consider the matter closed.

 

 

Check the free CRA Noddle to see if there is any entry there.

 

 

Claiming this a mortgage shortfall could be OK the Council of Mortgage lenders agreed that its members would not seek repayment of shortfalls after 6 years has elapsed without being in contact with the alleged debtor

[rdm2006]

Claiming this a mortgage shortfall could be OK the Council of Mortgage lenders agreed that its members would not seek repayment of shortfalls after 6 years has elapsed without being in contact with the alleged debtor

 

I am unsure how can they claim it is a Mortgage Shortfall when there were excess proceeds from the sale. a debt yes but a "Mortgage shortfall" ???

 

and yes HSBC and it is not on my cra file

[BRIGADIER2JCS]

I am unsure how can they claim it is a Mortgage Shortfall when there were excess proceeds from the sale. a debt yes but a "Mortgage shortfall" ???

 

and yes HSBC and it is not on my cra file

 

 

 

 

Your post 2# could be the answer a SAR should tell one way or the other.

[rdm2006]

Your post 2# could be the answer a SAR should tell one way or the other.

 

 

I have requested this info so many times already under SAR but never get it

 

does this letter sound ok

 

 

 

Dear Sir,

Thank you for you letter dated XXXXXXXX. I do not acknowledge a debt to you or your client.

 

 

The information I have requested (and still require if you intend to take this further) is a full breakdown of the COURT COSTS and not a statement of accounts, however, in addition to this I would also like a statement detailing how the proceeds of the sale (£82,250 approx) were attributed and a statement of all accounts as at the day before proceedings commenced in 2008.

 

I note that you state the money allegedly owed by me is a “Mortgage Shortfall”, Please explain with a detailed breakdown how this could possibly happen, In 2008 at the beginning of the repossession we owed approximately £71,000 to HSBC and £7,000 to EPF (a division of HSBC) totalling £79,000 which would leave a net excess of £3,250.

 

Calling something that which it is not in order to make a gain (either financial or a gain in rights) is, in my opinion, an act of fraud. I note that a debt of court costs would allow your client the right to chase payment for 6 years before this would be “Statute Barred”, however, a mortgage shortfall would allow them the right to chase payment for 12 years, a gain in the right to chase payment for a further 6 years.

 

In a statement of truth from yourselves you claimed that HSBC were unable to produce documents requested by me, you then went on to state that these documents were irrelevant. Please explain the following:-

 

· How you read a document which could not be reproduced due to cost in order to know that its content was irrelevant.

· If it was reproduced and read then how were the costs of printing and postage so high that it would not be cost effective to send to me.

 

Your client offered to “write off” any outstanding debt if we were to withdraw our defence from the case.

 

I am currently in receipt of state benefits ESA and would not have the funds to repay this alleged debt.

 

I would request that your client write off this alleged debt as it offered to do during the case in question.

 

Please either confirm that your client has written off this alleged debt or provide the information requested above.

 

If this doesnt work ill SAR again

[BRIGADIER2JCS]

Looks good to me rdm.

 

 

Please let us know the result.

[rdm2006]

i will

[rdm2006]

they have passed my letter to HSBC

[rdm2006]

Result. it is being written off

[BRIGADIER2JCS]

Result. it is being written off

Excellent result rdm well done!!

 

 

Brig.

[Andyorch]

Well done rdm...thread title amended.

 

Andy