NRAM full and final settlement or BR?

thinkpositive1

silvercar wrote: »

So they would allow the sale to proceed ie relinquish their charge (s) on any amount over £180k.

Of course, you could sell, let them take whatever the sale yields and then start negotiating with them on the shortfall. There would be no point in them making you bankrupt as you have no assets, so the loan would continue until such a time as they accepted a settlement. You may be surprised how little they would settle for to clear you off their books.



A repossession is immaterial once you have a bankruptcy on your credit record. If you were seriously thinking of this (and why not, given you will see nothing from the sale), you may as well stop paying the mortgage now and save up a rental deposit.

Thanks. I don't think they will "relinquish" the charging order - hence all the professional advice I have had saying that they get first call on any funds raised over and above clearing off the secured loan (the mortgage).

If I could sell the house for (for sake of argument) say £5K or so more than the secured mortgage, I would love to be the recipient of that £5k and then could use it to make a F&F settlement offer to NRAM and my IVA creditors and get it all over with.

What I am told though is that it won't play that way as the solicitor dealing with the conveyancing would first pay off the secured £180k mortgage balance and anything left over would go to NRAM towards what is outstanding on that loan.

The only way, and it feels like clutching at straws, maybe make a written offer to NRAM saying "I can confidently sell the house quickly for £185K. Would you be prepared to accept the £180k of this to pay off the secured amount and leave me with the £5k to make an offer to you (and my other IVA creditors) as a F&F settlement?"

The backstop being that if they say no, then I say "have the keys back, you sell it, get what you can and I am going bankrupt so you'll be getting less than if you agreed to my proposal"!!!!

silvercar

I can confidently sell the house quickly for £185K. Would you be prepared to accept the £180k of this to pay off the secured amount and leave me with the £5k to make an offer to you (and my other IVA creditors) as a F&F settlement?

To which they are almost bound to say "No" so that they don't have to share the 5k with any of your other creditors.

Where does the money come from to pay the solicitors and estate agent?

The backstop being that if they say no, then I say "have the keys back, you sell it, get what you can and I am going bankrupt so you'll be getting less than if you agreed to my proposal"!!!!

It requires one part of NRAM to talk to another to get agreement to do that.

Info on charging orders.

I'm not sure if NRAM have the power to block the sale, given that the unsecured loan won't be cleared by the proceeds of the sale. That being the case I would be reluctant to tip them off about bankruptcy plans. It may be possible for you to get the charging order removed (by a judge in court) given that it gives NRAM an advantage over other creditors and could prevent the property sale.

thinkpositive1

Thanks Silvercar but I feel rather confused by all this. Probably need to read though a couple of times to work out what this means.

As for the figures they are best estimates and what I was getting at was if the sale led to £5k "spare" (after those fees and the secured debt had been cleared).

My head hurts!!

Thrugelmir

thinkpositive1 wrote: »

What I am told though is that it won't play that way as the solicitor dealing with the conveyancing would first pay off the secured £180k mortgage balance and anything left over would go to NRAM towards what is outstanding on that loan.

The solicitor also represents NRAM during the transaction not just you, and will need to follow due (legal) process.