Thread: In a mess with Northern Rock - Repossession and BIG shortfall + secured loans

Hi, we need some help and advice.

To cut a long story short, bought a place for £118k in 2003 NR Together 125% mortgage + additional 15k for refurbishments, £600 per month. A year later mortgage up to £900 a month which was fine.

We bought a property business in Spain and after 3 or 4 letters over 6 months from Northern Rock offerring £20k at same rate as mortgage we took this to improve our business in Spain, a block of rental apartments.

The business in Spain began to fail and we borrowed more money from Northern Rock. Each time from a letter from them calling up and within 5 days the cash was in our account, no proof of income etc asked for at all.

The mortgage in Jan 2008 was £1400 a month plus mounting bills in Spain meant we couldnt afford to pay it, we had to send the money to Spain to meet these payments as we were earning money here that covered all the costs here. We stopped paying and advised NR of this. We looked at our options and took employment in Vietnam where we have been since August 2008 on 4 year contracts and have no want or need to return to the UK due to the fact they repossesed the flat and our financial position.

We have now receieved a letter stating NR sold the property for £120k, just £2k more than we paid in 2003. Now all of the apartments in the block are the same, ours had been refurbished to a high standard new kitchen, bathroom, oak floor etc, alarm system yet 2 neighbours near identical apartmenst sold for £160k and £162k and we had ours valued in Dec 07 at £182k. With solicitors fees, estate agents fees, secured/unsecured loans and the shortfall they say we owe £100k!

A few questions

1. If we were to go bankrupt, would this affect the property we own in Spain - which is on the market?
2. We can honestly afford no more than £50 a month towards this and dont know what to do, should we offer this or not acknowledge and accept the debt yet?

Thanks a lot, we are only 26 years old and have got way over our heads very young, now renting and working in Vietnam and slowly managing to get back on our feet again. We just want to sort this out but dont know how.

Thanks

dont acknoledge the debt, never do that, always put them to absolute proof of everything, dont even pay them the 50 a month , its pointless and by doing so you are sort of agreeing to the debt,

as you are out in Vietnam, i would do nothing else at this point in time, the NR have lost and will loose a load of staff 'cos they are one hell of a useless bank, now owned by the taxpayer, the Gov will mess them up in due course, just sit and wait do nothing for now