Full and final settlement

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If I have had a shortfall figure advised and want to settle by lump sum arrangement, if the surrender value of the mortgage endowment policy equates to about 30% of the total amount of shortfall, would that be realistically accepted or would the lender require the endowment, plus an additional lump sum contribution from each liable party on top?

E.G 9000 shortfall o/s endowment surrender value = 2.6k

Regards Fiesta

-- Fiestafolie (fiesta.folie@ntlworld.com), January 23, 2003



Many lenders have been settling for between 5-10% of the shortfall. Have you followed the advice on the Home Repo site? Have you, for example, made the lender proove they sold your property for a fair price? Furthermore, when you settle make sure all third parties are included i.e. insurance companies (see previous postings).


-- M Amos (idgroms@hotmail.com), January 24, 2003.

You would need to give us some more background in order to give you a clear directive.

Did you have a Mortgage Indemnity Insurance? If so what were you told it would cover you for if you defaulted on your mortgage?

Was you home sold for the market price and if not did the lender make efforts to ensure the best price was secured?

They really have to provide supportive evidence and documentation in support of any alleged debt and until they do, do not admit any liability and do not provide them any written or oral personal details regarding your financial statust etc.

If you have not served a sarn on the lender and any their agents who are in communication with you....do so now by recorded delivery.

The endowment side of it I don't know much about this but it would I think be considered an asset and obviously the lender will be aware of its' value. Maybe you should check around the different companies who buy endowment policies for the best surrender value and keep it close to your chest if a company offers more that what the lender thinks it is worth. That way you might be left with something if you negotiate (eventually) a settlement with the Lender.

Hope this helps but study the info on the site for reliable advice.


-- hanging in there! (Anderston828@aol.com), January 24, 2003.


One point I forgot to mention is that you need to check whether your mortgage endowment policy is 'assigned'. If it is, as I understand it, the lender automatically gets the benefit from it (and I don't think you'll have any say in the matter), then chases you for the remaining shortfall, if there is one. I am not 100% certain about this, so please check it out. I believe it should say somewhere in your mortgage terms and conditions, and/or your endowment policy, whether the policy has been assigned. I would certainly, in the first instance, check with your endowment provider, it may be that the lender has already got their mitts on it.


-- M Amos (idgroms@hotmail.com), January 24, 2003.

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