Settlement accepted...but

mistalee

Mortgage company have accepted a reduced fee to settle our account which we are over the moon about as we have had some tough times.

But my wifes name is to remain as unsettled on her credit report which they said is all they can do.

Now, how long would this have to remain on her file for and can I put a note about it on her file?

Also, is there any reason why i couldnt apply for a new mortgage on my own without her name on it? Its just that we have always done it jointly so I am unsure.

Thanks in advance for any advice offered.

Tixy

Have they explained why your file will show as settled and hers won't?
Is there any difference with regards your finances (such as is one of you in an IVA or bankrupty or anything along those lines). Have they stated in writing that they consider this payment as full & final settlement of both of your liabilites and that neither of you will be chased further in relation to this debt?

A record stays on file for 6years from the date is was settled, the date of the default or if they simply stop updating it but there is no default then it would be 6years from the last update.
Is this a property you had repossessed? if so presumably there is a default date on her file?

Regarding new mortgage - if this is a new property and your income and credit file etc is such that you would be able to obtain a sufficent mortgage on your own then you could do this. Though you might need to close down any joint accounts and financially disassociate from your wife first on your file.

mistalee

Thanks for that.
My bankruptcy was clear 5 years ago. But what happened with the house was that we asked tenants first to buy our house from n rock so they could then rent it to us. We had nothing to do with the sale. It wasn't until 5 years later I discovered by accident that there was £18000 shortfall which my wife had to be responsible for as joint mortgage holder as I was bankrupt. N rock at no point in that 5 years informed us of this shortfall, so we owed them the interest accrued for that 5 years too!!

Our situation now is we have had a joint mortgage for last 4 yes and want to move to a bigger house.

We can't understand why northern rock are saying they accept our offer as full settlement but are saying it won't come off her credit file.

They also said they can't send us this acceptance in writing, we must pay them first then they will send us a letter to confirm settlement!

We just don't know what to do for the best to be able to move onto a better mortgage.

Tixy

Does the old mortgage account show up on your credit file at all? Did you sell the house to tenants first or did you hand it back to the bank and they sell it to tenants first? If you handed it back before you bankruptcy then surely it should no longer show on your credit file at all?

I wouldn't pay before you have something in writing. And I wouldn't pay unless they will mark wifes file at least as partially satisfied. If they won't do that then what are you actually gaining by making the F&F?

mistalee

Tixy wrote: »

Does the old mortgage account show up on your credit file at all? Did you sell the house to tenants first or did you hand it back to the bank and they sell it to tenants first? If you handed it back before you bankruptcy then surely it should no longer show on your credit file at all?

I wouldn't pay before you have something in writing. And I wouldn't pay unless they will mark wifes file at least as partially satisfied. If they won't do that then what are you actually gaining by making the F&F?

The outstanding amount is on my wifes credit report. It doesn't show on mine anymore.

When I went bankrupt I was told they could take my house off me anytime within the 3 years bankruptcy period. So's we didn't have the worry of that we got in touch with tenants first. They purchased the house directly from northern rock. We were not informed of anything at all until it was sold. But we were never told of any shortfall during the sale until 5 years later. And we're paying the interest on that 5 years too. And even then, it was me who called northern rock because we were getting lots of junk mail from them (morgage offer deals etc) and it was then i found out about it!

I see what you mean about what do we gain from paying it if it is still on the credit report, but it would mean not paying £160pm and the agreed sum is £5800 for the balance of £18000. But you're right we need it in writing first, but the guy on phone says they can't do that. Im not sure of my next step with this to be honest.