| Djabar Babai has gone from being heavily in debt to | | | | Nat West did nothing. The court ruled that because |
| his mortgage lender to outright home owner in one fell | | | | action started in 1992 it was now 'time-barred' and |
| swoop, thanks to a favourable ruling by Appeal Court | | | | ruled that the mortgage debt of £165,000 be |
| judges. The decision has catapulted the unemployed, | | | | instantly wiped out, making 'squatters' Djabar Babai |
| failed businessman from being virtually penniless into an | | | | and wife Zinat outright owners of the property. |
| extremely comfortable financial position, as the court | | | | Nat West lawyers argued that by awarding the |
| awarded Babai his home of 16 years, despite owing | | | | property to the Babais the court would encourage |
| £165,000 for the property to Nat West. | | | | lenders to come down harder on those falling behind |
| Babai has not paid a penny in mortgage repayments | | | | with mortgage payments, but the judge's dismissed |
| since January 1993, but judges in the court of appeal | | | | that argument, saying that the bank failed to take |
| decided that squatter's rights enable him to claim the | | | | appropriate action over 16 years, not a number of |
| property outright, after Nat West bank took too long in | | | | months. |
| their attempts to enforce repossession. This decision | | | | This decision has some interesting implications, not |
| means that the bank must now write off the | | | | least of which affect Babai and his credit worthiness. |
| mortgage on the property in Stockport, although they | | | | As he was declared bankrupt in 1994, that information |
| are considering an appeal to the House of Lords in a | | | | will now have disappeared from his credit reports, and |
| final last-ditch attempt to overturn the Court of Appeal | | | | because the repossession action is now struck out by |
| ruling. | | | | the high court that too will disappear from his credit file. |
| Nat West first made a formal demand to recover its | | | | So, with assets of over £200,000 and no or |
| outstanding debt in 1992, following which Babai agreed | | | | minimal debt, Babai should be able to rebuild his credit |
| to repay his mortgage at the rate of £40 per | | | | score extremely quickly, and maybe start a new |
| month. However, after making only a handful of | | | | business using his house as collateral. |
| payments, Nat West failed to take any further steps | | | | His future certainly looks far brighter than it did one |
| towards repossession. In the absence of any action by | | | | year ago. From being in an almost hopeless financial |
| the bank Babai and his family continued to live in the | | | | situation Babai now has the world at his feet, pending |
| house, without paying any further mortgage | | | | any decision from Nat West to make a final appeal to |
| repayments. | | | | the House of Lords. Until the bank declares its |
| Some seven years later, Babai wrote to Nat West's | | | | intentions Babai will be no doubt be keeping his fingers |
| solicitors outlining his hopeless financial situation, and still | | | | crossed that his newly acquired property remains his! |