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Satisfied or Settled Defaults - Mortgage Application
jbkmum
Posts: 294 Forumite
For once I am writing on behalf of a friend!
She has 30k in debt, all defaulted November 2018 ( I think).
She would like to know if it will make much difference when applying for a new mortgage, whether those defaults are satisfied or settled. Excluding when she applies for the mortgage (I know the older they are the better but that is all I know).
She's received an inheritance of 18k so was going to try to do F+F but if satisified will be looked at unfavourably, she would pay off as much as she could. She knows its morally right to pay it all off, but I think she's just trying to provide for herself and her kids (single mother etc etc).
So - would mortgage providers view satisfied and settled differently?
She has 30k in debt, all defaulted November 2018 ( I think).
She would like to know if it will make much difference when applying for a new mortgage, whether those defaults are satisfied or settled. Excluding when she applies for the mortgage (I know the older they are the better but that is all I know).
She's received an inheritance of 18k so was going to try to do F+F but if satisified will be looked at unfavourably, she would pay off as much as she could. She knows its morally right to pay it all off, but I think she's just trying to provide for herself and her kids (single mother etc etc).
So - would mortgage providers view satisfied and settled differently?
£5000 left to pay on credit cards, down from 40k!!
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Comments
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Once she's defaulted, it makes little difference how it's marked.
She just needs to get them settled.0 -
But thats my point, settled means you paid off in full and satisfied means you partially paid it off.
So you're saying either of those markers wouldn't be viewed much differently?£5000 left to pay on credit cards, down from 40k!!0 -
She can't actually pay in full now as she defaulted, so the interest would have been suspended.
All she can do is agree a figure with them to settle the debt.0 -
Outstanding debts = Outstanding committments. No mortgage lender is going to advance further funds until the the matter is resolved.0
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Thrugelmir wrote: »Outstanding debts = Outstanding committments. No mortgage lender is going to advance further funds until the the matter is resolved.
Is it an outstanding debt if it is satisfied versus settled.£5000 left to pay on credit cards, down from 40k!!0 -
No. .0
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Thank you! Sorry, I know it seems like a simplistic and silly question but I guess it makes a lot of difference to her finances.
Thank you for your help£5000 left to pay on credit cards, down from 40k!!0
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