Hi albabarn

Do you know if your trustee has been discharged? If so he would have no legal authority to sign any forms.

If you don't sign the voluntary repossession forms, then the bank need to go down the formal route to repossess, however you won't be liable for the shortfall.

Mark

Hi, thank you for your quick reply.

My trustee was discharged in April. Would they forward those forms on to me then since that's where they're being sent.

Also the mortgage company didn't submit a claim form for the dividend to cover the short fall, they only submitted a claim for an unsecured loan I also had with them. Do you know if this will cause me any issues with them trying to chase me for shortfall/court fee's or any other payments? (I know you've already sort of answered this but it is something that i'm really concerned about)

Thanks again

Hi albabarn

I'm not sure why they would send the forms to your trustee if they are aware he has been discharged.

In my experience they will not receive the signed forms back and go down the formal repossession route. They could not have submitted a claim for the shortfall previously as its unquantifiable until its repossessed and sold and will then pursue your partner for the shortfall.

Mark

Mortgage lenders can submit a claim for a shortfall even if the property has not been repossessed and sold - they would have had to have placed a value on their security first, which they can then be held to. However, in practice this rarely happens and you shouldn't read anything into the fact that they did not make a claim, albabarn.

The main thing to remember is you cannot be held liable for any shortfall. The mortgage was a pre-trust deed debt and as such you are discharged from any liability for it at the end of your trust deed. It is only their right to realise their security that remains, they have no right to collect any shortfall if their security does not cover the debt.

Thanks for your responses, it's made me feel a lot better.
I've received a letter from the solicitors who are dealing with the repossession of the property on behalf of the mortgage company. It is a Voluntary Possession Information Form. I'm a bit confused though as on it there is a request for Borrowers Employment Details, why would they need this?

Hi albabarn.

I'd imagine its part of their efforts to figure out how to collect a shortfall, if one existed and you were responsible for paying it.

Ok, however as this was included in the Trust Deed should I just leave that information blank?

If you're not liable for the shortfall I don't suppose that it matters much either way.

Hi albabarn,

You want to be careful about what personal information you give out especially employer details. Even although you won't be liable for the shortfall, the mortgage company will still try to pursue you for this and can try calling you at work which can make it very awkward. Your Trustee will be able to get this sort of contact stopped but I can sometimes take a little time.

When you apply for a loan, credit card, mortgage or any kind of finance, you don't think twice about providing your employer details. If your circumstances change and you start to struggle financially and not pay your debts this is when the employer details can come in handy to your creditors.

My understanding of the existing debt collection rules is that they certainly cannot notify your employer (or colleagues) that they're chasing you for a debt.

That doesn't mean that taking repeated calls at work yourself might not become embarrassing though.