Secured Loan Settlement Advice

benbay001

AThornley wrote: »

I can pay the loan off now as i have been left some money, i wss just hoping some how i can reduce the settlement as i have paid so much back, frustrating that i basically have to pay back the full amount i took out over 10 years ago.

But you forget that you desperately needed the money 10 years ago, where as now you dont.

The lender took on a really big risk by lending you £12k.

For every one person like you, that repays, there may be another who defaults.

They are a business and have to make money, otherwise their service wouldnt exist for people in the position you were in.

AThornley

I Don't dispute that I needed the money and i certainly haven't forgotten! 10yrs ago but it was more out of desperation to clear debt off than say buying a fancy car. They took no risk lending me the 12k as it was secured on the house, they couldn't wait to give us the money. I have paid to the tune of 27k back already, I am not interested in how that is made up they have had more than enough money from me, I just want a reduce settlement to clear it off. I could of quite easily gone bankrupt but I didn't I have paid my way.

The_Mould

Alright AThornley,

How much do you have available to make a formal full and final settlement offer to the creditor?

Kind regards

The Mould

AThornley

Why do you ask that?

The_Mould wrote: »

Alright AThornley,

How much do you have available to make a formal full and final settlement offer to the creditor?

Kind regards

The Mould

The_Mould

All that matters in your case is the here and now.

So, if you have an amount of money now, no matter how it came into your hands, if you would like to use some of it to make a full and final offer to the creditor against the sum of £12k, it would be helpful to know how much you are offering to settle.

That's the only reason why I asked.

Kind regards

The Mould

AThornley

To be honest i just wanted them to try and see my point and to offer me a reduced amount, but realistically i would be happy to pay under 10k obviously as much as possible really so we can move on with our lives and hoefully spend some money on our house, as for the last 10 years we having been paying debts.

The_Mould wrote: »

All that matters in your case is the here and now.

So, if you have an amount of money now, no matter how it came into your hands, if you would like to use some of it to make a full and final offer to the creditor against the sum of £12k, it would be helpful to know how much you are offering to settle.

That's the only reason why I asked.

Kind regards

The Mould

The_Mould

Ok, no worries,

I have years of experience in legally binding full and final payment settlement offers.

As you have £10k available, what I would suggest to you is this:

Write a letter to the creditor,referencing the account number, offering him £7,000 as a full and final payment to settle and close the account.

Your letter should state "I have recently received funds in relation to a private matter and this has put me in the position of being able to make this settlement of to you in full and final payment of my account.

This offer to settle my account is made without any admission of liability as to the amount you claim is owed under the account.

If you are willing to accept the sum of £7,000 in full and final settlement of the account, I confirm that I will pay the same to you within 7 days of your written acceptance of this offer.

Please provide your written response hereto within 7 days of receipt hereof.

Thank you in advance for your kind consideration.

I look forward to hearing from you shortly.

Yours faithfully

MR A THORNLEY".

I would advise that your offer letter be sent by Special Delivery.

Kind regards

The Mould

AThornley

Ok thank you, i have nothing to loose so i will certainly give this a try.


Thanks for your advice appreciated



Regards
AThornley

The_Mould wrote: »

Ok, no worries,

I have years of experience in legally binding full and final payment settlement offers.

As you have £10k available, what I would suggest to you is this:

Write a letter to the creditor,referencing the account number, offering him £7,000 as a full and final payment to settle and close the account.

Your letter should state "I have recently received funds in relation to a private matter and this has put me in the position of being able to make this settlement of to you in full and final payment of my account.

This offer to settle my account is made without any admission of liability as to the amount you claim is owed under the account.

If you are willing to accept the sum of £7,000 in full and final settlement of the account, I confirm that I will pay the same to you within 7 days of your written acceptance of this offer.

Please provide your written response hereto within 7 days of receipt hereof.

Thank you in advance for your kind consideration.

I look forward to hearing from you shortly.

Yours faithfully

MR A THORNLEY".

I would advise that your offer letter be sent by Special Delivery.

Kind regards

The Mould

bris

It's a secure loan, they don't want it paid off, no offer will make them budge on this. You pay it off they lose a lot of interest.


You need to understand this and the fact you knew what you were doing when you took on the loan. Desperate or not doesn't come into it, having paid back 27k already doesn't come into it.
Pay the settlement and you won't have to pay another 10k plus in interest.

swardean

I disagree, seizing and selling a house is a long and drawn out process and not always easy if you are the second charge on a house and not the primary lender. They may get a a charging order but then they would only realise their money when the house was sold, which could be years.

In addition, getting some money now rather than more later may be attractive to some companies.

Anyway nothing lost in formally presenting a proposal... good luck.

BTW on the figures you provided I think your settlement should be slightly less (unless they are also adding early payment charges).


Loan: 12000
Term: 240
Monthly Payment 203
APR 21.8%
Paid to date: 27,202.00
Settlement 10,446.36