mortgage shortfall

katie781

Hi

Im looking for help to cut a long story short, my ex husband throw me and my son (age 2 at the time) out the home we shared, then after month or so moved his new girlfriend in after time he promised to pay the mortgage then found out he didnt and the house for repo

I couldnt not get off the mortgage at the time because he couldnt keep a job long enough to try,

I have just got a letter saying i owe £7239, I really dont want to pay this and dont see why i should as this was there debt not mine, but i found out that my ex husband went bankrupt so they cant get the money off him

my plan of action was to say to im not paying this, if that didnt work maybe offer a monthly payment plan or even offer a amount for full and final settlement

how much would people offer as a full and final settlement for the amount please

thanks in advance
Katie

hcb42

Unfortunately it is your debt also, even though it is his fault, you could offer a monthly amount or let them take you to court and agree a monthly plan. I am no expert on how much they would walk away for, but I wouldnt have thought they would do that without an attempt to recover the lot..

Happened to my sister and she went to court and the court didnt make her pay the interest (£5K for a car for her ex - she doesn't drive and he split up with her a week after she took the loan for him...!)

kingstreet

Presumably this was a joint mortgage for which you are jointly and severally liable?

If that's the case, you are equally liable for the shortfall and should negotiate with the creditor to pay what you can afford.

Refusing to pay may see you sued for bankruptcy yourself, although if you have no/few assets such a move would be pointless.

There is no "book" answer to your question. The lender will assess your situation and decide if your offer is acceptable based on its assessment.

silvercar

You would need to have a conversation with them and demonstrate to them that you have little spare income to pay this.

Make sure you have in writing from them that they will accept the amount as full and final settlement and mark the default as "settled" on your credit file.

Anecdotedly, they could accept as little as 25% of the debt. If you wait long enough they may sell the debt on to a third party who will have paid very little for it and may accept less.

katie781

silvercar wrote: »

You would need to have a conversation with them and demonstrate to them that you have little spare income to pay this.

Make sure you have in writing from them that they will accept the amount as full and final settlement and mark the default as "settled" on your credit file.

Anecdotedly, they could accept as little as 25% of the debt. If you wait long enough they may sell the debt on to a third party who will have paid very little for it and may accept less.

Thanks for the advice im going to book a appointment with CAB they said i will be hearing from shoosmiths would that be a third party?

Contemptuous

Shoosmiths are a firm of solicitors.

katie781

Contemptuous wrote: »

Shoosmiths are a firm of solicitors.

is that a bad thing?

silvercar

katie781 wrote: »

is that a bad thing?

They will be the legal firm acting for the lender to recover the outstanding money. I'm surprised the lender didn't write to you directly first, but it could be that shoosmiths handled the sale of the repossessed property and this is just a loose end they are tying up as part of that work.

I'm not sure that they would have the authority to accept a F&F settlement without going back to the lender, but they could certainly convey an offer.