Shortfall full and final settlement settlement

MichMoor

Have been in discussions with the bank over a 36k shortfall, they have hinted they would be willing to substantially reduce the figure if we (my estranged wife and I) can offer them a lump sum tho have not given us a idea of what that figure would be.

I do have substantial other debts although am up to date with all payments on these but not much room in my budget.

Can anyone give me idea of what kind of figure they might settle for?

Yes I know its a bit off a difficult question to answer but thought I would try anyhow.

dojoman

I think you have answered your own question really, there is no definitive answer that anyone can give you as all banks/building societies are different. All you can do is make an offer and go from there. Are you BR by the way?

MichMoor

No not BK, am trying one last ditch effort to avoid it!

silvercar

Is this a shortfall to allow a sale to go ahead or is it a shortfall after a repossession?

kepar

silvercar wrote: »

Is this a shortfall to allow a sale to go ahead or is it a shortfall after a repossession?

Surely it is post sale as to know the shortfall.

The questions you should be thinking about

How long have you had the mortgage for?

In that you will have paid a lot of interest if a repayment mortgage, so they will have got a lot of their money back that way.

Also how much can you realistically raise?

If you have had the mortgage 5 years plus, I would be offering 12-15k

silvercar

I'd be producing an income/ expenditure sheet showing how very little I have to repay on a monthly basis. Plus some words to explain why this is unlikely to change, add that a relationship split means that the 2 incomes now need to cover 2 homes rather than 1. Mention that bankruptcy is a risk (if this is true) and that bankruptcy means the debt would be written off.

Then start low, I'd say about 10% of the shortfall is a realistic starting point. Often these lenders get nothing as either bankruptcy looms or the repossessed are living on low income/ benefits with no prospects of paying more than £10 a month. To the lender something is better than nothing and it means the case is closed, so off their books.

MichMoor

The house has been sold, I handed the keys back after encouragement from them, the wife left me and I had no chance of making the repayments and yes she was a joint signitory, I have asked her if she could find a way of adding to the offer. I have made a expenditure sheet and pointing out I already have substantial debts, no savings or assets (my father has offered 3k if it would mean they will go away and leave me alone), this is all I can offer, whilst I am not on a bad wage most of my excess is going servicing the debt that already have. I do not have a lavish lifestyle though I feel if I could find a solution to the shortfall I could pay off the bulk of debts within a couple of years without having to go BK, what little excess I do have which I could offer them would be about £100/month but it would mean I would have no social life at all, just existing really.

Ineedaname

How long do you think you would be paying this amount back to the mortgage lender? In other words, how long would your life be on hold for? After paying back the mortgage shortfall, how much longer would your life be on hold for in order to repay everything else? In the meantime, is your ex going to help at all with the joint debt?

Is it fair on you to have no life while she gets on with hers?

MichMoor

She has taken some of the debt on but it has not been fair, I had a meeting yesterday with CAB who advised me BK was probably not a option as technically I am not insolvent and if the mortgage company excepts something really low I still would not be, though I would have a lot of debt which I do not know how long it will take to pay it off.

Ineedaname

Might be an idea to give one of the other free debt advice charities a ring, never hurts to have more than one opinion.

MichMoor

Well you never know fortunes change!

I have just got in from work and there is a letter from First Plus from a loan I settled years ago accepting my claim for PPI and offering us full reinstatement, 7.5k!

Now am in a bit of a quandry cos I could offer them a improved offer that they may accept, which will benefit my estranged wife as well. Or I could use it to pay off the credit cards which she spent on them but left them with me, they are in my name and when I asked her to be fair and accept her half she refused point blank!!

Or alternatively could say sod it and go Australia for a month!!!