Need help very scared with Mortgage Shortfall

unluckywithmoney

It is a very long story where i am considering bankruptcy but am very scared to do so.

My house was reposessed in 2007 when mortgage was granted they valued house at £270000. After receiving two valuations between £145000 and £165000 sold for £160000. Since then the mortgage shortfall claimed was reduced as they negotiated a settlement out of court with original mortgage valuer and they refuse to give me further details of this. Also no repossession order was ever made as house was taken when I was out. They claim a notice was put on door fourteen days before and house taken peacefully. My partner was joint owner but he went BR and is no longer liable, however I do not work and any money they would potentially receive from me would be my husbands or child tax credits. I have no way of paying them and feel in dispair. I don't want to go bankrupt and cannot afford to go bankrupt. Also company pursuing me had been fined from FSA for how they treated customers around time of my repo is it worth contacting them.

Sorry if does not make sense but my head is fuzzy from it all

JimmyTheWig

unluckywithmoney wrote: »

I do not work and any money they would potentially receive from me would be my husbands or child tax credits. I have no way of paying them

Unfortunately they won't care about this. You signed the document to say you'd repay the money. They don't care how you get the money to do this.

Why not post an SOA (Statement of Affairs) and see what people make of it.

fermi

unluckywithmoney wrote: »

My partner was joint owner but he went BR and is no longer liable, however I do not work and any money they would potentially receive from me would be my husbands or child tax credits. I have no way of paying them and feel in dispair. I don't want to go bankrupt and cannot afford to go bankrupt.

In that case then you simply tell them that you have no income from which to make payments.

They can either like it or lump it. Not much they can really do.

Even taking you to court for the shortfall wouldn't achieve much, if anything.

They will of course make a nuisance of themselves and threaten all sorts, but it would be mostly bluster and empty threats.

How much is the value of the reduced shortfall that they are chasing?

unluckywithmoney

They are after sixty thousand I live in rental accommodation and only just got furniture sorted last year following repo.

fermi

Well, I know it feels scary to owe that amount of money, but in practical terms there is *burger* all they can do to you at present.

Unless your circumstances change then I would say your options would be:

- Offer a sum to settle if you can get anything half decent.
- Go bankrupt
- Tell them that it's tough, you can't pay it.

I think they will be aware that there isn't much they can do, and that if push comes to shove then you can go bankrupt and they will get nothing. So maybe they would do a deal or write off for even a modest sum?

unluckywithmoney

Thank you fermi I am going to write to them tell them situation and see what they say. Partner has it in writing they are not pursuing him so will see what they come back with.

fermi

That is all you can do really.

The letter in this link and the fact-sheet it comes from may also be helpful.

---> ‘Asking your mortgage lender to write off the debt’ sample letter (M2)