Mortgage shortfall after 12 years

fatbelly

I'd suggest a two- pronged attack. Ask for write-off using National Debtline resources

https://www.nationaldebtline.org/fact-sheet-library/mortgage-shortfalls-ew/

And save a fighting fund. These debts are often settled for small amounts. I settled one for 5%

Gracey23

Hi all. As the person who made the original enquiry I wanted to clarify that the shortfall was the result of us having to hand back the property as we fell on very hard times and were unable to pay the mortgage. The house was then auctioned off and we were left with the shortfall. We separated and divorced a few years later but are still both on the debt. Thankfully, we have mutual respect so I'm confident we can put a case together as a team and approach our lender as the financial strain of both being single parents and the current financial climate has only intensified the situation. We've never missed a payment though, and have always been transparent and maintained open,. direct communication with the lender so I ma hoping that will go in our favour. Appreciate all the help.  

Gracey23

Would it be advisable to ask for a solicitors support in approaching the lender? 

MorningcoffeeIV

Gracey23 said:

Would it be advisable to ask for a solicitors support in approaching the lender? 

No, as there is no legal basis for it being written off.

Save the money you would have blown on a solicitor and be ready to add it to any final settlement figure if you can get that far and have the opportunity to negotiate.

Gracey23

Well any solicitor fee would have been begged from somewhere but I get what you're saying.  Do final settlement figures need to be paid in full usually? 

fatbelly

Gracey23 said:

Well any solicitor fee would have been begged from somewhere but I get what you're saying.  Do final settlement figures need to be paid in full usually? 

No point or ned to involve a solicitor.

Yes, settlements are generally with a lump sum

Gracey23

Would the lender ask to see bank statements and how far bank do they have a right to go? I'm not sure my ex would be willing to share his. Do you think this would cause an issue? He's willing to share payslips and a budget sheet but that's it. 

sourcrates

Gracey23 said:

Would the lender ask to see bank statements and how far bank do they have a right to go? I'm not sure my ex would be willing to share his. Do you think this would cause an issue? He's willing to share payslips and a budget sheet but that's it. 

Lenders can ask to see anything, and you are perfectly free to refuse.

If your not comfortable showing them personal information, just tell them so.

Gracey23

Is a mortgage short-fall after handing back the house to the lender and them auctioning it off, seen as a priority or non-priority debt? 

fatbelly

It's very much a non- priority debt because it's generally large, and owed by someone who has many other debts (as they struggled to stay afloat) and are no longer homeowners. Hence bankruptcy is likely, and the lender gets nothing.

That's why these things are often settled for a few pence in the pound