Report Remember This? in House prices and the economy Posted February 28, 2007 Lenders can and do continue to chase debtors. I think once proceedings have started, they have upto 12 years to try and get their money back. Do not believe that one can simply handback the keys to 'your' home and walk away debt free. It just doesn't work like that and years later the lenders will pop up to demand their money once you have got back on your feet. Correct, basically most mortgages with LTVs of more than 75%/80% were sold with Mortgage Indemnity Guarantee (MIG) (which the mortgagees paid for!) which meant that the mortgagees insured the lender against the circumstance where if the property was reposessed and sold for less than the mortgage amount, the insurance company paid the lender the difference. Most of those who handed back the keys thought it was the best way to get out of this dismal situation (running away) but did not read the small print which allows the insurance company to track down the mortgagees and demand the difference. I am aware of someone who was tracked down 10 years later and had to negotiate with the insurers as to what they were willing to accept as settlement.