Hello all I'd like to know if once individual liability is settled, can joint liability still be invoked? ie can you still be chased as a 'party' to the debt/loan? so if I was to receive a letter that incoperates: "...our client is prepared to accept the sum of X in full discharge and in conclusion of your individual liability and all sums due to our client in respect of the above mortgage account.." then does that necessarily mean/imply that I am totally not liable anymore? if it helps, the above is regarding a joint mortgage shortfall. thanks all in advance.

If I receive a letter that states: "...our client is prepared to accept the sum of X in full discharge and in conclusion of your individual liability and all sums due to our client in respect of the above mortgage account.." is that enough? Also as a side thought, once individual liability is settled, does that assume joint liability is automatically settled?? or does it still mean you're jointly liable??

Sorry, I think I might have addedd confusion. Yes I have added the "not sell on" in my letter to them, though I think it could have been worded better. As for the idemnity - true say. Although I guess if they refuse that but agree to the 'not selling on', then realistically, with no other guarantors to the mortgage, the only other party that I would potentially need idemnity from would be the (only) other party to the mortgage.

PGH7447: Many thanks for that, I already sent the text from my earlier post to them, will await what they come back with. All in all I realise that without that it leaves them open to be able to sell or pass on the debt to someone else in the future - so almost pointless not having that clause in now.

well I spoke to the lenders, their policy is not to allow guarantors so that settles that.. regarding the indemnification, I have added that, so thanks again. Have forwarded the whole lot to a lawyer now, and so waiting to see what she comes back with. Possibly going to try for a consent order/agreement too, and get the lenders to sign it. Ultimately I just want to know that i'm not going to get chased in years to come by some random dca or anyone else for that matter.. hence making sure that it's all done properly now.

Thanks Stephan56 Apart from that, you don't think its 'excessive' really is it? especially if i've already drafted it for them!

Hi Stephan56 thanks for the reply.. not sure if there was a guarantor to the mortgage..how could i find out? also how would you add that request in.. I've drafted the below.. I wonder if this is any better? We can confirm that our client is prepared to accept a payment of £X in full and final settlement of your (Mr X) liability in the matter. In support of this our client will provide a covenant that, and is of the clear understanding that, on receipt of this amount, neither we, our client nor any associate company, whether acting on our client’s behalf or as a personal endeavour; will take any further action to attempt to enforce or pursue this debt in any way whatsoever, and will not seek any further repayment of any form from you in respect of this account (by which it is meant all monies due to our client under the mortgage formerly charged to the property known as X), and that any and all liability on your (X) behalf will be fully discharged on receipt of the above stated monies. Our client will further confirm that they will not sell, pass on, instruct or otherwise claim or offer this debt onto any other third party or company for collection or enforcement purposes. Furthermore, as part of the agreement, our client agrees to mark any entry on a credit reference agency file relating to your liability on the above account as "satisfied" in full. Further, the above agreement does not in any way prejudice our client’s rights to seek recovery of the remaining balance from all other parties to the mortgage. Do you think they would agree to sending me a letter as above, do they have any reason not to? anything missing from the above wording? anything not needed? thanks in advance.

Ellen/Others, after much negotiation, i've received the below from the solicitors. To me the letter doesn't seem "robust" enough, can anyone advise? when I asked for them to add in "full and final settelement" I was told that they (the solicitors) had been advised by the bank, that they could not ammend the standard letter. Now they're asking me to provide what I want inserting in the letter, and they will 'run it by the bank'. here is what they've sent as the pre-settlement letter: We can confirm that our client is prepared to accept a payment of £x to conclude your liability in this matter. In support of this our client will provide a covenant that on receipt of this amount they will not seek further repayment of any form from you in respect of this account (by which it is meant all monies due to our client under the mortgage formerly charged to the property known as X Address). Please note that the arrangement is subject to payment of the aforementioned sum being received at this office on or before X. Cheques should be made payable to XXX and quote the reference XXX on the reverse. Further, the above agreement does not in any way prejudice out client's rights to seek recovery of the remaining balance from all other parties to the mortgage (including guarantors if applicable).

People At the end of settling a mortgage shortfall and this is what i've received from the solicitors. The debt is with the Falihax and there is one other party to the mortgage. To me the letter doesn't seem "robust" enough, can anyone advise? when I asked for them to add in "full and final settelement" I was told that they (the solicitors) had been advised by the bank, that they could not ammend the standard letter. Now they're asking me to provide what I want inserting in the letter, and they will 'run it by the bank'. here is what they've sent as the pre-settlement letter: We can confirm that our client is prepared to accept a payment of £x to conclude your liability in this matter. In support of this our client will provide a covenant that on receipt of this amount they will not seek further repayment of any form from you in respect of this account (by which it is meant all monies due to our client under the mortgage formerly charged to the property known as X Address). Please note that the arrangement is subject to payment of the aforementioned sum being received at this office on or before X. Cheques should be made payable to XXX and quote the reference XXX on the reverse. Further, the above agreement does not in any way prejudice out client's rights to seek recovery of the remaining balance from all other parties to the mortgage (including guarantors if applicable).

Can anyone see any loopholes in the below? Its intended for one party to the mortgage to be cleared of liability.. there's no mention of 3rd party debt collectors? We can confirm that our client is prepared to accept a payment of £x to conclude your liability in this matter. In support of this our client will provide a covenant that on receipt of this amount they will not seek further repayment of any form from you in respect of this account (by which it is meant all monies due to our client under the mortgage formerly charged to the property known as X Address). Please note that the arrangement is subject to payment of the aforementioned sum being received at this office on or before 29th Sept. Cheques should be made payable to XXX and quote the reference XXX on the reverse. Further, the above agreement does not in any way prejudice out client's rights to seek recovery of the remaining balance from all other parties to the mortgage (including guarantors if applicable).

MW I've been reading this thread with great interest, any updates? did you hear back from the OC? have you made the payment already? Thanks One20.

If the mortgage is in joint names, you are jointly and severely liable - this basically means if payments stop, then the lender can go after either one of you, or both of you. In terms of your children, if you are working and she was to raise this with the CSA, then you would be forced to pay a certain percentage of your net wage. Hope this helps.

I had a similar dealing with the CSA. After continuously paying them their calculated amount without any qualms, I did write to them advising that it was costing me a fair amount every month in travelling for contact (640 miles a month). They said they would re-asses it, and in doing so go in touch with my ex. She claimed that I have never really had contact with our child, and as such the CSA threw my claim out whilst advising me of the same. After that - I never bothered writing back to them. Even though now I have court orders that provide for contact (as short as they are). Yet again, another classic case of father who wants contact, mother won't allow it and of course the courts take forever to sort anything out, yet the CSA are quick off the mark to get your money. and wait for it.. the best part being, since the RP is on max state benefits, your money doesn't even get to your child, instead the govt keeps it! Rant over. RedLetter - I will be interested to know what happens, good luck - i've subscribed to the thread.

thanks for the reply Ell-enn Do you think that I should do this regardless of the fact that I feel I will make them an offer for full and final settlement? or would you say that they two are unrelated and I should do it anyway? Also if I do make an offer of f+f would I do it on a 'non prejudice' basis? (so they couldn't hold me to it, in case I was unable to get the monies) do I send such an offer letter to the lenders or the solicitors? thanks again.

hi Ell-enn, sorry for being thick here, but do you mean to send the solicitors a SAR or the lenders? I recently wrote back to the solicitors and asked for them to clarify a 'miscellaneous cost' which amounts to over 1400 pounds. Also asked them to clarify whether or not they have contact the other party to the mortgage - ie my ex. I'm considering that I may make them an offer of full and final settlement (maybe 10-12% of the toal amount they claim is owed?) I'm hoping that if they accept, I can then go ahead with the VR and carry on with my life.

bumpy anyone?

Hi Ell-enn thanks for readiing. they say I owe them 37k. for reference, the house was purchased for 105k, mortgage of 95k, and outstanding mortgage of 90 something k when they took the house. Prior to me moving out, I had never missed a payment, and it was my(/our) first mortgage.

Tonka99, Robcag thanks for your responses. Checked the link, and a house sold for a lot more than what they sold mine for - so that might be something to go off? Saintly_1 thanks for moving the thread. I have since spoke to a few 'legal advisors' and one suggested to make an offer to the solicitors for full and final settlement, and then once this is agreed to apply for VR? Problem is 2 fold: a) I don't know what to offer them and if they will accept b) the whole thing would be dependant on firstly me getting accepted for VR (as I would use part of the money to pay them), and secondly on me getting it after them agreeing to an amount - any mistiming and it could all go wrong, ie I may not have money to pay them with, or if they catch sight of it prior to agreement of an offer for f+f - they may change their mind? one totally confused and desperate one20.

Hi all I really need some advice on a predicament I have: Last year my house got reposessed and now I am in receipt of letters from the lenders' solicitors. I have asked for details of the deficit, how they sold the house, how much it was valued at etc and they have replied after about 6 weeks of my letter. They sent me a reply to the effect that they acknowledged my letter. Sent a bundle of papers which had valuations etc, detailed when the account went into arrears, when the house was reposessed and the fact that they were unable to advise if there was any mortgage protection on the account. and then just the usual, we look forward to hearing from you.. I have yet to respond to them. I'm employed fulltime and my ex (party to the mortgage) is not. I have the option to take voluntary redundancy and the amount received would be less than the defecit the lenders have declared. My question is, would the lender be able to take that money, or would it be dependant on when I receive it and when (if at all) they apply for either an attachment of earnings order or apply to make me bankrupt? If it is a matter of 'when' or 'if it is timed correctly' then I know that there is a certain amount of time litigation can take, In a Nutshell - i've already lost my house and there is no point me trying to make a clean start with the VR payment if they're just going to take the whole lot! any advice would be highly appreciated, i've asked friends, but no one seems to know the answer. Ps the house was valued at roughly 40k less than what it was bought by us (2 years prior). I believe it was highly undervalued, but they sent some other valuations of 'similar' properties in the region.

bump.. any one else able to shed some light on this please?

That is true, we are both jointly and serverably liable. The sad reality is that because she's on state benefits, it is unlikely they will chase her. In essence, I don't mind taking the VR (so long as I can secure the funds) and then this would put me in the same boat? The problem is however, that the VR payment would most likely not come through prior to the end of September, and in the interim I am worried that I wouldn't be able to hold of the court action through litigation. That said it did take them a good 6 weeks to come back to me with the information I had requested. If I agree to a monthly repayment figure now, and then take the VR, then declare no earnings, maybe that would work?

Hi Pinky69 They sent me a reply to the effect that they acknowledged my letter. Sent a bundle of papers which had valuations etc, detailed when the account went into arrears, when the house was reposessed and the fact that they were unable to advise if there was any mortgage protection on the account. and then just the usual, we look forward to hearing from you.. Ps the house was valued at roughly 40k less than what it was bought by us (2 years prior). I believe it was highly undervalued, but they sent some other valuations of 'similar' properties in the region.

Hi all I'll try and keep this short. Last year my house got reposessed and now I am in receipt of letters from the lenders' solicitors. I have asked for details of the deficit, how they sold the house, how much it was valued at etc and they have replied after about 6 weeks of my letter. I have yet to respond to them. I'm employed fulltime and my ex (party to the mortgage) is not. I have the option to take voluntary redundancy and the amount received would be less than the defecit the lenders have declared. my question is, would the lender be able to take that money, or would it be dependant on when I receive it and when (if at all) they apply tor wither an attachment of earnings order or apply to make me bankrupt? If it is a matter of 'when' or 'if it is timed correctly' then I know that there is a certain amount of time litigation can take, basically my concern is, there is no point me trying to make a clean start with the VR payment if they're just going to take the whole lot! any advice would be highly appreciated, i've asked friends, but no one seems to know the answer.

I don't have any savings or assets. My car is worth about £600 if that. I'm currently renting my brother's house and am paying him rent. Am I wrong to assume that worst case, they will ask me for me income/expenditure and then work out how much they can take off me? will that amount have interest on it, or will it be so much a month off the fixed 36k. Also, will they make me pay the whole amount or will they chase her for any of it too? thanks all in advance.

42man thanks for your reply. How and what would I be able to request?