Mortgage Indemnity

[Shellyo1o]

Hi

Which forum would be the best place to post a problem with a Mortgage Indemnity Claim from a soliciter on a repossion?

 

 

Thanks

[Seminole]

Here would be as good a place as any.

[Shellyo1o]

Thanks.

 

I bought a house with a partner, we split, house got repossesed.

 

The mortgage co. could not find me ex, so they came to me for the £22,000 shortfall.

 

As I was a single parent at the time they were not too hard on me, they agreed to me only be liable for half the debt and I agreed to pay £15 per month.

 

This has been going on for about 6 years now.

 

Last year I got a letter from Curtis soliciters claiming I owe them £5000+ for a mortgage indemnity. Apparantly the mortage company took out a MIG and when the house was repossesed they got £5000 from it, now the insurers want me to pay them the £5000.

I wrote to them last year and asked for some sort of agreement signed by me as I knew nothing about it, they replied that it wasn't that sort of agreement!

I filled in a budget planner for them, but my husband refuses to have anything to do with this debt as it was before I met him (I don't blame him either), so I just put my salary down and offered a token payment of £5 per month, which they refused, asking for £300 per month instead. After a lot of tooing and froing they sent me what looked like a petetion for bankrupcy.

I went to my local CAB and they advised me to let them make me bankrupt, as I have no property or asesst, and it would also clear my mortgage and credit card debt.

So I did nothing.

That was last October. After hearing nothing for nearly a year they have written to me again saying my £5 offer is not acceptable and they need more information about my financial situation.

 

If anyone can give me any advice on this I would be very grateful.

 

Thanks

[Shellyo1o]

Any advice would be great

[JonCris]

All lenders take out an MI policy which you pay for in your monthly repayment

 

As this is unusual you need to tell us what evidence you have that they agreed to you only owing 1/2 the debt.

 

Sending the petition for bankrupcy was at the time only an attempt to frighten you. Anyone can get the form fill it in & send it to the debtor.

 

Scares the hell out of them, unless of course they are a member of this site

 

By the way tell your present husband that any adverse info recorded against you will also affect his credit worthiness

[Shellyo1o]

Thanks for the reply Joncris.

 

The bank agreed that I was only liable for half the debt, there is a note on the banks records about it, as when I rang to query soemthing last year the girl on the phone knew all about it, and also said she could send a letter to me saying as much if I needed it.

 

And yes, the bankrupcy petition did scare the hell out of me!!

 

Any idea on what I should do going forward with this?

Can they claim this from me if I havn't signed an agreement?

[JonCris]

If the bank drew down on the MI then the insurance company has every right to chase you.

 

You don't sign any agreement as the lender takes out the insurance & uses it in the event of an equity loss causing a reduced sale price.

 

Much like if another car driver hits you they do not have to have been a signatory to YOUR insurance agreement for you to recover your losses. After paying you out your insurance company will then look to recover their losses from the negligent other driver.

 

You need to recontact the bank & explain what has happened Also notify the insurance company what your doing (You could send a CCA demand) as the bank by agreeing to 1/2 may have breached their contract with the insurer who, although doubtful, could in turn demand their 5K back from the bank

[Shellyo1o]

OKay Joncris - thanks for the advice.

 

Does seem a bit daft the insurance company paying the bank then asking me to pay them - they have a win win situation - they get premiums AND they claim back what they payout, can't see why the bank just didn't add it on to my debt and save on the premiums.

 

I'm a bit dubious about contacting the bank, they may go back on our agreement and hit me for the 22k loss, instead of 11k as agreed.