Mortgage shortfall after repossession ... Help

xambz84x

Hi... My partner purchased a flat when he was 20 and lived in it with ex girlfriend and friend after a while his friend moved out and his relationship ended and he went through a major low was diagnosed with depression by doctor and given tablets... He was self employed as carpenter and also the trade was suffering due to the resession the work was drying up this also added to depression mortgage payments were missed and soon enough the flat was repossed. About a year after we met and wanted to start a future together 2 years down the line we are renting a house together work for my partner is starting to pick up but still has it's downsides...one day He received a letter from a solicitors chasing the mortgage shortfall from the sale .... 44k!!!!

They were asking for a lump some for monthly payments... We couldn't believe it? Surely having a property repossed is bad enough as you have shown you can't afford payments why the he'll would they think you have that amount??!! After the initial shock I did some research on the Internet and found some good bits on national debt line. Sent them a letter from there template asking for all info regarding the sale and reppo as we believe that sold for a low amount. It tool about a month for them to respond with all info .. Yes they did sell for 70k when the mortgage was 120k but this can not be argued as it all boils down to the conditions of the Market at the time of sale which was still in high recession. We sent other letter explaining circumstances now and at time of reppo explaining he has no assets living in rented accom and work is as it comes nothing solid also sent a income and exspenditure showing spare money is not there to pay anything back even monthly.

Also sent copies of doctors records showing the illness and explained that this large debt is causing a lot of stress and worry and may cause more depression. They sent a letter back asking about adding the amount onto the dmp that my partner is on!! They would not accept that large amount and would advise bankruptcy... I politely sent another letter advising this and asking them to write off the debt and it will never be able to be paid back ... They replied saying that can not do this as my partner is working but however they will put on hold for 9 months !!! Interest free!!!

Better then nothing I thought, but then I had an idea you have to pay 600 to declare yourself bankrupt they know that is his only other option as can't afford to pay that back monthly we just about survive how we are. So I sent a letter offering them the 600 to write the debt off otherwise will go bankrupt and they get nothing.... I sent that letter in July still haven't heard anything back so I sent a copy of letter and polite covering letter saying did they get the letter are they looking into and can they respond as need to know what to do and causing stress, that was in august and still nothing!??!

I'm not sure what to do now can they just ignore us are they waiting for the 9 months to end so they can chase again... My partner just needs to know what to do cuz if he is going to make himself bankrupt would like to do sooner rather then wait plus he is paying 200 a month on other debts that he has which is pointless if going to go down bankrupt route... It is all just annoying cuz if he would of known this he would of done it after the flat got reppo and would of come out of the 1st year of bankruptcy and would now be starting a fresh. We both just want to Put all this in the past and settle down it's bad enough the thought that we can not buy a house together for a long time.... If anyone has Any advice or help please let me know... Thanks

opinions4u

I think more people would read your post if you broke it down in to paragraphs a little.

silvercar

In short,

repo years ago.

sold leaving 44k shortfall.

lender now chasing.

considering bankruptcy.

silvercar

You really have 2 options. Either offer a one off payment in full and final settlement, though I doubt £600 would be enough! Agree a payment schedule, that could last years. Go bankrupt if you have to.

Did he own the flat by himself?

xambz84x

opinions4u wrote: »

I think more people would read your post if you broke it down in to paragraphs a little.

Sorry done on my mobile and didnt realise it would come out so big all amended now :-)

xambz84x

silvercar wrote: »

You really have 2 options. Either offer a one off payment in full and final settlement, though I doubt £600 would be enough! Agree a payment schedule, that could last years. Go bankrupt if you have to.

Did he own the flat by himself?

Yes he did own by himself, he doesnt want to get into a payment schedule because 44k is going to take forever to pay off. I just thought £600 was a good figure as they know u have to pay that for bankruptcy... just not sure if they HAVE to respond to me or can they just ignore?

[Deleted User]

Are you currently financially connected in any way? If you are, this could impact on your finances as well.

steve1980

Bankruptcy is the only way out of this, unless you have £44k sitting around doing nothing of course.

As Domino said, if you have anything jointly then it will affect you as well. Make sure you have a notice of disassociation placed on your credit record.

silvercar

xambz84x wrote: »

Yes he did own by himself, he doesnt want to get into a payment schedule because 44k is going to take forever to pay off. I just thought £600 was a good figure as they know u have to pay that for bankruptcy... just not sure if they HAVE to respond to me or can they just ignore?

£600 for a £44,000 debt doesn't sound a good figure to me. Taking you to court and getting an agreed amount every month sounds much better.

Unless you can offer at least £5,000, I doubt they will consider your offer worthy of reply. You've acknowledged the debt, so they now have another 12 years to chase you. They will probably wait until you have a reasonable income or a property to chase you again.

SouthCoast

£600 to clear a £44k debt that could be sold in the marketplace for say 20p in the pound!

Information on mortgage shortfalls:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

Jojo1daffy

Hiya
Since your partner owned the flat on his own then you could not be chased for this debt, but if the lender resorts to obtaining a judgement this will show on your partner's credit file and may affect your credit file by association.
Probably the only lump settlement that the lender would accept would be in the region of £25k to be honest. If your partner is working they could obtain an attachment of earnings or a CCJ to obtain payment so bankruptcy would probably be his best option but it is not a foregone conclusion that it would be granted.