can anybody tell me from their past experience what sort of a lump sum will the lenders accept for a mortgage shortfall and whether they accept your first offer or will they keep coming back for more?

The shortfall is 30k but I was considering offering them 3k which is the most I can afford but am worried I will just be laughed at!

-- lisa (lisajh29@hotmail.com), February 08, 2002

Answers

I had a s/fallm of 22k and they accepted 5k in instalments of 50 quid but i stopped paying it as i learned that i should not have done that.It depends on your circumstances but i would take advice of which there is plenty on this excellent site. dan

-- dan (dannyhague@aol.com), February 08, 2002.

Lisa,

have you had any written substantiation of the shortfall detb they allege you owe? If you have - are you satisfied that their claim is correct? If you haven't - you need to send the lender a S.A.R.N. (Subject Access Rights Notice) requesting copies of all documents relating to your case - (data printouts & handwritten documents).Go to REPOSSESSION in the OPTIONS menu & then to DO's and Don'ts, there is a lot of very valuable information there that is essential reading for you. There is also a sample SARN there. The fee for ALL the documents is £10 and NO MORE. You need this info to establish for yourself how they have arrived at the figure they are claiming. If they don't reply or send only partial documentation write to them again asking for a response to your request. Don't make or receive 'phone conversations with them about this matter - only deal in writing, keeping copies of ALL your letters and ALL theirs (and the envelopes their letters come in- (they are dated). Send your SARN/letters by recorded delivery only, as proof.

Good luck.

-- Joy Harker (fightingback@harker.go-plus.net), February 08, 2002.

Somewhere on the website it suggests making an offer of between 2 and 10 percent of the lender's claim. So 3k sounds absolutely spot on. Make sure to use all the correct wording - you need to say the offer is "in full and final settlement" of the debt, and you need to be sure to send it Special Delivery (costs £3.50), so they can't claim they haven't received it (I speak from experience - this is where a previous attempt at settlement of my own alleged debt floundered!) It is also worth making it a condition of settlement that the lender acts to erase records of the debt with credit reference agencies and any similar records held within the industry...all this is written down somewhere on the website - read it all in detail before making an offer. Good luck,

-- Melody (mbc109@york.ac.uk), February 14, 2002.