Tuesday, Feb 12, 2008
Yet another reason for lenders to tighten their rules
Daily Mail: Man who refused to pay mortgage for 15 years is granted 'squatters' rights'
"However, banks have warned the decision by top judges to wipe out Djabar Babai's arrears could lead to tougher early action by lenders.
An increased number of vulnerable home owners could be forced onto the streets by banks fearing they will lose their money."
Posted by becky @ 04:34 PM (387 views) Add Comment
6 Comments
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1. Jonb said...
The statute of limitations says 12 years for mortgages. What's the surprise here?
2. little professor said...
It's a pretty clear cut case, the bank has nothing to whine about. Mortgage debts are statute barred after 12 years if the debtor does not acknowledge the debt and the lender does nothing to chase the debt over this time. Even a simple reminder letter from the lender would have reset the clock.
If they allowed him to stay there for so long after they had issued their last demand, it's their own stupidity. He is perfectly entitled to stay there now mortgage-free. This has noting to do with squatters rights - he was not living there illegally at any time, as they never initiated repossession proceedings.
3. japanese uncle said...
Those asleep on their rights without exercising it will lose it eventually. Lesson No.1 of the Civil Code. One thing is certain, if the number of borrowers in arrear will reach millions, banks won't be able to chase all those cases as tens of thousands of their work force will be made redundant undoubtedly in the near future.
4. Orwell said...
The bloggers on the site sum it up. Amazing the delay. Perhaps though in the judgement the judiciary are saying that they do NOT want to protect imprudent lenders the reason being that they are saying they will not allow the Building Society to inflate out any mortgage debt over more than 12 years this time. Possibly also the judiciary are eyeign up those BTL's ?
5. shipbuilder said...
This non-story ticks all the Daily Mail boxes - you can practically hear the squeals of glee as the hack typed 'Iranian-born'. Unemployed 'scrounging'? Tick. Immigrants? Tick. The Mail is one of the most vile rags on the face of this earth - like 90% of their stories, this one is of no importance and serves no purpose than to get veins bulging on middle class foreheads.
6. techieman said...
Little prof - i dont think a simple letter would actually have done the trick. To stop time bar you either need to agree to stop it - thats a standstill agreement in the UK or a tolling agreement in the US, or you have to issue a writ. I'm assuming there is no term in the mortgage deed which would support your contention though.
12 years for property 6 years for contractual other stuff. One thing is for sure hes either a very lucky man or the bank are completely incompetent - or were making so much money they just didnt care. Or all three.