Northern Rock Shortfall - Will they write off

In_a_mess

Hi, not sure if this is posted to the right place but here goes. We are currently on a DMP (Payplan) and struggling to meet this each month. We have little equity in our home but decided to sell. We have had an offer for £118,500 and our current mortgage debt is £113,300 (Dreaded Northern Rock). Though when we got the mortgage (Prior nationalization) we got a cashback bonus. They now state that our mortgage redemption is £120,568. Obviously we now do not have enough to cover the mortgage and they are sending app form to apply for shortfall (on a loan basis, which is unlikley to be accepted due to my defaults).
After taking out selling costs the shortfall will be around £5500. Will they write this off - how can I persuade them?? If they block the sale and we are forced into repossession then they will get a lot less for the house, plus I presume that if we have had a good offer ourselves this will be taken into account in court. I really want to avoid more debt and repossession, Any advice - would be so gratefull. Thanks Debbie

VIGILANT22

They dont write a shortfall off.........hence the reason they're suggesting a loan...Repo doesn't mean yr debts are written off.....suggest you contact Shelter/CAB to get a better understanding of what is involved...

In_a_mess

Thanks. No I know that repo doesn't mean that its written off. I just meant that surely if we have had a good offer and they block a sale because I can't pay of a £5500 shortfall (which is a cashback bonus redemption NOT actual mortgage debt). Surely a court would look unfavourably towards Northern rock if they have not allowed me to sell at asking price. A reposseion could be 20 - 30 % lower. They are surely shooting themselves in their unsympathetic and plain useless foot. I am not trying to absolve any debt responsibilities just trying to find out how and if they could be persuaded to write off a redemption charge (not mortgage debt). Tahanks

poppy10_2

In_a_mess wrote: »

Surely a court would look unfavourably towards Northern rock if they have not allowed me to sell at asking price.

Nope. They will look unfavourably on you for not paying back what you owe.

What happened to your cashback bonus?

In_a_mess

Unfortunately cashback is all gone, used for home improvements. The cashback was £10k and they say that I have to pay £7k back on this (after 6 years in mortgage). I believe this was a 10 year tie-in. If I have to pay this back on a loan I will never be accepted - defaults all over the place due to DMP. I don't know what to do!!

VIGILANT22

[QUOTE=In_a_mess;_just_meant_that_surely if we have had a good offer and they block a sale because I can't pay of a £5500 shortfall (which is a cashback bonus redemption NOT actual mortgage debt). Surely a court would look unfavourably towards Northern rock if they have not allowed me to sell at asking price. A reposseion could be 20 - 30 % lower. They are surely shooting themselves in their unsympathetic and plain useless foot. I am not trying to absolve

You keep writing, surely, surely etc.....but sadly this is yr viewpoint....
The fact is you have borrowed this money and must pay it back...as previously suggested try and contact http://www.nationaldebtline.co.uk/
Shelter/CAB etc....they're used to dealing with situations like this...