When I said 'Im in a position to pay the 21k' This is due to unfortunate circumstances and certainly isn't long term so I need to make sure that this is sorted out very carefully. Thanks again.

Long story about the house, but legally advised to hand the keys back. Short fall in the mortgage didn't pay off anything to WF. I'm going to offer them 10%. The letter of settlement states 'in response to your written request for a settlement figure dated xxx' I didn't ask for a settlement figure - is this just WF trying to spook me to pay before they go under, or to prompt me to open negotiations? Thanks for your time & comments.

Hi, I have a secured loan with Welcome Finance (WF) taken out in 2005 for c£25k. Unfortunately I lost my home in 2007 and moved into rented accommodation. I advised WF and they told me I cannot transfer to an unsecured loan and that I had to pay the outstanding amount. I couldn't afford to do this, kept my head down and kept on paying the installments. I've had a few arrears but back on track. Can they enforce a secured loan, when I no longer have the property? I received an annual statement last week which was the first one ever. I also received a settlement figure on my loan which is for the full outstanding amount: £21,000 which i didn't ask for. This means I will pay £42,000 in total for my loan. I am currently in the financial position where I could pay off the £21k but with WF in trouble I don't know if I should offer them considerably less or wait for them to go under before making an offer to whoever takes them over as I understand they will buy the debt for approx 10-15% Any advice would be appreciated.