Considering BR - Repossessed property mortgage shortfall question! 31 January 2022 at 1:21AM in Bankruptcy & living with it 3 replies 291 views

SpicyParsnip

Considering BR sooner rather than later due to circumstances but...... I've just had a shock email.

I sadly had a property repossessed when life was all completed messed up and there ended up being a £19k shortfall in the mortgage when the property was sold.

I've had a fair bit of to-ing and fro-ing with HSBC and it was their initial shortfall as well as a few other bits and pieces that accumulated at the time that makes me think doing the BR just clears the slate.

But........ the email from HSBC after a formal complaint as no-one could give me a straight answer is......

Dear Mr ***********,

 

Case Ref: ************

Thank you for your recent query about your HSBC UK Mortgage account ****** *********.

I can advise the remaining account balance is not being pursued and it will not be sold to any third party.

If this is the case, then BR just possibly might not be an option - but has anyone else had any experience of a repossessed mortgaged property shortfall being totally written off completely - its dead, never to return? 

Obviously I'm going to be asking for this in writing with hand written counter signatures for proof!

sourcrates

Occasionally banks make commercial decisions not to chase a particular account.

Yes, I have seen this many times, mainly on loans and credit card debts, and even once previously on a mortgage shortfall debt too.

You see banks know that most folk don`t have thousands of pounds of disposable income to hand to repay such large amounts of money, its a fact that smaller debts are chased as there is at least some chance of payment, when your talking 19k, the average person wouldn`t be able to clear such a debt in less than say 20 years, they may as well just write it off against tax.

I would not rock the boat here, you have, as an official complaint, final response, an email stating your debt will not be chased or sold to any third party.

That`s about as good as it gets, I would accept that wholeheartedly, and move on with my life, keep that final response in a very safe place, I'd print off a hard copy if it were me. 

TripleH

As per Sourcrates, keep a paper copy and electronic copy in safe places in case you need in the future.

fatbelly

These debts are often not pursued aggressively and I've seen them settled for tiny amounts - think I got one done for 4p in the £ for someone who wanted to avoid bankruptcy because of setting up a new business.

The logic is that someone in this situation will have no assets, be in rented accom and have at least this large debt, probably others. If they push hard the person just goes insolvent.

If you have no other debts or at least nothing significant I'd just get on with your life and forget this one.