Chances of 20% full and final

jessicaRabbit

I know knowbody will know for sure but what do you think the chances of having an offer of 20% full and final on a £37376 mortgage shortfall accecpted?

Culex

I would guess that the probability would be low and tending to zero.

Have I won the prize?

Deeperblue

Agree with the above. No chance.

taxsaver

I disagree.

It rather depends on your circumstances and where the money would be coming from (for example family).

If your overall debt and income situation is very bad and if bankruptcy is an option that you might seriously consider then a 20% full and final proposal would make total sense to the lender as the alternative might be zero!

If you wish to give rather more details here or by pm to me then I might be able to give a better idea of the likelihood of acceptance.

jadex

taxsaver wrote: »

I disagree.

I would agree with you but this is a mortgage, not a credit card debt so chances are rather slim.
Wild guess is property value is higher than £37k (probably much higher), so lender could make much more than 20% from repossesion.

taxsaver

jadex wrote: »

I would agree with you but this is a mortgage, not a credit card debt so chances are rather slim.
Wild guess is property value is higher than £37k (probably much higher), so lender could make much more than 20% from repossesion.

The OP is clear that this is a mortgage SHORTFALL..... i.e. the property has already been sold (probably after repossession) with negative equity and costs resulting in the residual balance of £37,376.

jadex

taxsaver wrote: »

The OP is clear that this is a mortgage SHORTFALL..... i.e. the property has already been sold (probably after repossession) with negative equity and costs resulting in the residual balance of £37,376.

it then changes the things -> 20% may be a good offer
anyway, we can only speculate

fatbelly

jessicaRabbit wrote: »

I know knowbody will know for sure but what do you think the chances of having an offer of 20% full and final on a £37376 mortgage shortfall accecpted?

Good.

This is the sort of debt that causes many people to go for bankruptcy -they have just lost their main asset, they have low income (too low to fund the mortgage) and all savings are gone, trying to prop the whole thing up for far too long. Often there are also loans, credit cards etc.

So the chances of the lender ever getting anything like 100% over the debtor's remaining lifetime are slim, and they know that. Even complete write-offs do happen.

If you are in a position to find £7500 after you have just lost your house to a shortfall of £37k, I think they'll be interested.

To start with, work through this systematically, following the guidance in this factsheet:

Factsheet | Mortgage Shortfalls

Culex

What I want to know is when the prize winners will be announced.