Acknowledgement of mortgage debt - how does the court define it?

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Sheik Yerbouti

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Hello all,

I'm in a strange but unfortunately all too familiar situation. I purchased 2 properties with a co-investor in the pre-crash period. We purchased these properties with 2 seperate mortgages from the same bank. Due to mental health issues, my other co-investor stopped collecting the rent and unbeknownst to me, both mortgages fell into arrears. I discovered this in February 2015 when I was informed by the bank that they had foreclosed on mortgage A and sold the property in a fire-sale, leaving EUR250,000 of a residual mortgage (now EUR330,000 including arrears). I managed to pay off the arrears on mortgage B and this mortgage has been serviced ever since I became aware of the arrears.

My question is this: Does the statute of limitations apply to mortgage A? I have not acknowledged this outstanding debt in writing and I have not received a court summons or judgement against me. Will the outstanding debt of mortgage A be statute-barred after February 2021 or by virtue of making monthly payments on mortgage B, does that constitute acknowledgement of the outsanding debt of mortgage A?

Any constructive advice is very welcome and appreciated. cheers, Sheik
 
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A 12 year limitation period is likely to apply possibly starting when the Letter of Demand issued giving rise to the receivership appointment.
 
Thanks again. The debt became unsecured in February 2015. After reading the thread in the link below, I was of the understanding that a 6 year limitation period would apply to unsecured debt after foreclosure. Thanks for your input in any case and do you know if repaying Mortgage B constitutes acknowledgement of the residual debt of mortgage A? Cheers

Key Post - Does my debt just disappear after 6 years, if the bank does nothing or can't fit find

I have summarised the discussion from this thread. A creditor has up to 6 years from the date of the accrual of a debt to take legal action. If the creditor gets a judgment, it lasts for 12 years. (Well, after 12 years, you can apply to the court to have it removed) If you sell your house and...
www.askaboutmoney.com
 
In my view, it is the status of the debt at the time the cause of action accrued that determines the relevant section of the Statute of Limitations. So if the debt was secured when the cause of action accrued then a 12 year limitation period is likely.

The loan A acknowledgement is not likely to be sufficient to acknowledge loan B.
 
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