Negative equity - paying it back monthly - other options?

papermoney

I sold my property in August 2009. The house was in negative equity and I have an arrangement with the mortgage company to pay back a certain amount each month, overall I owe 14k. There is a chance I may be given some money in a few months time, but it wouldnt be enough to cover the whole 14k, this is probably just me wishful thinking but has anyone ever offered a lump sum (a lesser amount than owed) to pay it off?

The other option is to put the money into a saving account to save the rest of the shortfall.

There maybe other options I have thought about (this news about the money is very recent).

Thanks

Thrugelmir

Give it a try. Ask the lender if they'll aceept a settlement if so how much. Do not show your hand.

frankw5

Go for it, its only a phone call after all. If you could let us know the outcome, that would be great.

VT82

Definitely worth a try.

And well done for repaying them after the (I assume) forced sale of your house. Must have been an unpleasant thing to go through.

Trollfever

A full and final settlement offer letter from National Debtline:


http://www.nationaldebtline.co.uk/england_wales/temp/2688_95911.pdf

papermoney

Thanks all. I will call them once I know about the money for definite. It would be great it they would do it. I wasn't forced as such to sell the house, but it was either sell it cheaper and avoid repo but pay the short fall or have it repossessed (so I didn't have much choice really lol).

geoffky

some have got away with 10p in the pound......go for it but tell them it is not your money and someone is doing you a great favour but it is time limited and be prepared to haggle and haggle..

maninthestreet

Which lender has allowed you to sell your property for less then the outstanding mortgage and pay off the difference on a monthly basis? What interest rate are they charging you for this unsecured loan?

papermoney

Hi the mortgage was with Northern Rock and it's on their variable rate which was 4.79% (the last I looked)

papermoney

I have rung and they have told me to put it in writing when I get the funds and they will look at all circumstances on an individual basis and make a decision.

papermoney

Just an update - I wrote a letter to them on the 1st November. I've not heard anything from them yet. How long is a reasonable amount of time to allow them to write back?