Repossessed home (2005) - sudden letter requesting outstanding balance.

BigBro_1980

Firstly, apologies if this is in the wrong forum. If it is, can you direct me to the forum where this should be posted.

Now the story...

Essentially, my father bought a home in 2003. He was doing ok, but suddenly became ill and couldn't keep up the repayments. After some time, he decided to 'give the keys back to the lender' - essentially allow the house be repossessed.

Now, out of the blue, he has been sent a letter requesting/demanding payment of the outstanding debt (which stands at £45k). Unfortunately, I spoke to the company and they are to send us letters outlining the debt.

The problem we have is that we don't have £45k sitting around to pay the debt. And we are a little lost as to what steps to take.

Can anyone provide me with ideas on what we could do? I am aware I will need to speak to a solicitor or a financial advisor about this.

(Unfortunately - my dad has a history of bad debt and bad advice. I am currently in the process of helping sort out his debt with Welcome Finance and also sorting out his mortgage - interest only and no savings).

Any help would be appreciated.

Many thanks.

BB

silvercar

Quite normal for lenders to allow time for the repossessed to get back on their feet and then chase the debt.

They know that there is little chance of you writing a cheque for the whole amount. Either you will need to make an offer of so much per month or offer a lump sum payment in full and final settlement.

The problem with so much per month is that interest will be added on to the original debt and you could find that the debt increases.

If you can afford to, I would be tempted for your dad to tell them that a family member has offered a one off sum to settle, but that your dad himself has no money.

The other thing to warn you is hat contacting them acknowledges the debt, so if your dad is the sort of person who can duck and dive for 12 years (from the repo date) you can escape their clutches.

One more thought, if there is any possibility of your dad going bankrupt in the near future, this debt would be part of the bankruptcy.