Leeds Building Society Mortage Shortfall***Settled***

[sgtbush]

Wow... Just wow.

 

You cannot and will not be absolved from your liability without a court order.

Do not pay.

Tell them to chase your ex wife and get a response from her as you cannot make a decision on your own when its joint liability

All this will do is

They will get money.

They will fail or not bother to chase your ex

The origins company or lender will chase you again.

[Riggers0162]

I take it you have read the message above from Leeds and Holbeck?

 

I have spoken to the Financial Ombusman and they are calling me back on Tuesday regarding the offer they have made.

Let’s see there View in the “written offer” from Leeds and Holbeck?

 

They have spoken to my ex wife and the record of the last phone call to her shown in my SAR information is that she will go bankrupt or rather Leeds and Holbeck can file for her bankruptcy!

 

I am if the understanding the £20k can and will only be a full and final settlement for the both of us!

That’s how they will work it!

Hence I really do need some proffesional advice from somebody local.

 

Many thanks

[unclebulgaria67]

Here are my thoughts on this.

 

Don't get involved in any full & final settlement, even if it were say £7k they finally agreed, which you borrowed.

 

Just pay them £20 per month ( if that is affordable) and stick to it. If they ever asked you to increase, you just provide basic information that shows that £20 a month is all you can afford. Outside of them taking you to court, they are not entitled to have your financial position looked at by a court.

 

This would avoid the bankruptcy you say would affect you.

 

If you see a local Solicitors that provides help with debt problems, many offer up to half an hour free and they can advise whether this is a sensible way forward or not.

[dx100uk]

urm.

 

something not right here

theres noway a mainstream BS would offer a £13k discount

 

get looking at that sar.

look for the mortgage agreement.

 

what insurances and PPI were you Sc@mmed out of

 

look at all the statements

look for PENALTY FEES.

like

arrears

missed DD

late

letter

phone call

debt management

 

FEES

 

they will be a fixed sum like 20,30, etc

 

wonder how much of this supposed debt is those and insurances - as ALL can be reclaimed

hence the discount

 

when was the last payment

when did they repo the house

[sgtbush]

Something I not right as far as the company are offering something that they cannot do without a court order. The OP is being seen as a cash cow because he I the only party that can make any sort of payment.

[Riggers0162]

Hi,

Not been in here for a while, I’ve been fighting away with the mortage company for months getting no where then finally after speaking with Payplan and discussing my options

 

I looked at Bankruoty and and Iva as soon as they were informed of this they have now agreed to settle my liability (joint mortage)

 

Originally they asked for £20,000 (Shortfall was £69,876) this I couldn’t raise, however my parents agreed that they would lend me £7,000 as a full and final settlement offer. I put this forward and they have sent the following response to my offer.

 

“I refer to our recent email correspondence and am pleased to advise that the Society agree to accept £7,000.00 as a discounted full and final settlement, which will release you from personal liability on the above mentioned account.

 

This agreement is strictly subject to receipt of funds within 28 days from the date of this email. Payment can be made before this date but should payment not be received by this date, we reserve the right to seek recovery of the full amount outstanding.

 

If you wish to discuss this matter further, please do not hesitate to contact me on Xxxxxxc

 

I hope so much somebody on here can advise,

is this possible,

how do I ensure my name is removed from the debt?

What do I need to ask for?

Do they require a court order?

 

They are obviously taking that as settlement on my liability or will they be taking this as settlement on the full debt (my ex wife is not making any payments or offer as she cannot afford anything)

 

I’m so confused and worried I make the wrong decision, obviously if I can avoid the Iva/bankruptcy that would be preferable but I need to be clear after payment this debt is no longer mine has my name attached to it or is enforceable.

 

Many thanks in advance.

[Spudzulu]

Hi

 

I had a significant shortfall with them. They pushed and pushed knowing that I wanted to avoid bankruptcy, but I got to the point where I could take no more.

 

I offered them X or I would save the money and go bankrupt and they would have nothing.

 

They accepted at a pace that was surprisingly speedy.

 

I suppose something is better than nothing.

 

I wish you well.

Spud

[Riggers0162]

Hi,

Sounds very similar!

 

Was this a joint mortgage?

 

Also if you don’t mind me asking what did you ask for to prove you were no longer liable and what did they send?

 

Thanks

[AndyOrch]

“I refer to our recent email correspondence and am pleased to advise that the Society agree to accept £7,000.00 as a discounted full and final settlement, which will release you from personal liability on the above mentioned account."

 

Ask what about your ex liability...will this be in full and final settlement of the whole debt and the account settled/closed ?

 

Andy

[Spudzulu]

Hi,

Sounds very similar! Was this a joint mortgage? Also if you don’t mind me asking what did you ask for to prove you were no longer liable and what did they send?

 

Thanks

 

Hi

 

Yes it was a joint debt, their solicitors provided me with a written guarantee stating that it would be as full and final settlement.

 

We also pointed out that if they did not accept our offer then it would be made clear that it was a route that we had tried our best to ignore.

 

They soon realised that they can not control bankruptcy and its final judgement. Who are you dealing with on their behalf?

[Riggers0162]

Dealing direct with Leeds Building Society at present. Recovery Department.

 

I questioned the full and final acceptance offer and asked about my ex partners liability and how they would take me off the liability and there response was as follows!

 

It is The Society who have made the decision to accept this reduced amount in settlement and upon receipt of cleared funds for the agreed amount, you would be provided with written confirmation from this office that you have no further personal liability to the account.

 

The Society would no longer pursue you for any remaining balance.

 

Please note that we are under no obligation to seek authorisation for this via courts or solicitors.

 

Your credit file would be updated to show a zero balance via partial settlement.

 

The mortgage account will remain open for the purposes of recovery collection from the other named party to the account.

 

I trust this answers your queries.

 

“I refer to our recent email correspondence and am pleased to advise that the Society agree to accept £7,000.00 as a discounted full and final settlement, which will release you from personal liability on the above mentioned account."

 

Ask what about your ex liability...will this be in full and final settlement of the whole debt and the account settled/closed ?

 

Andy

 

I review this after I questioned my ex partners liability after I offered payment.

 

“It is The Society who have made the decision to accept this reduced amount in settlement and upon receipt of cleared funds for the agreed amount, you would be provided with written confirmation from this office that you have no further personal liability to the account. The Society would no longer pursue you for any remaining balance. Please note that we are under no obligation to seek authorisation for this via courts or solicitors.

 

Your credit file would be updated to show a zero balance via partial settlement.

 

The mortgage account will remain open for the purposes of recovery collection from the other named party to the account.

 

I trust this answers yours questions.

[AndyOrch]

" The mortgage account will remain open for the purposes of recovery collection from the other named party to the account."

 

So your F&FS only covers your liability...not your ex.You must make a stipulation that the F&FS offer is on behalf of both parties to the mortgage...not just yourself.....obviously they may then shift their decision and reject it...so its alll down to if you wish to clear your ex also?

 

Andy

[Riggers0162]

Thanks Andy

Not bothered about her liability to be fair,

since the divorce she has been a nightmare and made no attempt to speak to or deal with the Building society,

 

just want to be clear on my side and move forward,

 

obviously have concerned on if the account is still open could they chase me again later and how moving forward it would effect me when applying for a mortage again! It’s just all so confusing!

[AndyOrch]

Well you have it in writing above.......they wouldn't ...your liability ceases

[unclebulgaria67]

I just wonder what happens legally, if the ex gets taken to court and the Judge says the debt is a joint liability, which the Building Society can't just amend via a settlement agreement with just one party.

 

Seems a bit iffy legally ?

[Riggers0162]

This is exactly what worries me? I cannot get any advice on the legalities of my release from the debt I’m going around in circles and really don’t know what to do next!

[AndyOrch]

I assume this will be joint or joint & several ? .....

 

Discharge of liability

 

The release of one joint tortfeasor from liability, whether by way of seal or accord and satisfaction (full and final settlement), releases all the others.

 

Where the parties are severally (separately) liable for a specific portion of a debt, one person who pays his or her own portion has no legal right to contribution from the others.

 

Where the parties are jointly liable (as a unit) for the payment of a debt, a party who pays in excess of his or her share has a restitutionary right to contribution for the amount of his or her over payment. This is because as between the co debtors, it is fair that neither should pay more than their fair share.

 

This could, of course be displaced by evidence to suggest that, in a particular case, some other division would be fair, or by agreement between the debtors.

 

If the parties are jointly and severally liable for a debt, both as a unit and as individuals, any party who pays in excess of his or her proportionate share can seek contribution.

[Riggers0162]

Many thanks but still clear as mud ��

[unclebulgaria67]

It is clear ( i think) if you log out of CAG and come back to read it again. I did not understand on first reading.

 

Basically, if you pay the F&F, it is settlement by all parties on the mortgage. The other bits relates to whether you could get a contribution from your ex, because you have settled the debt.

[Riggers0162]

I see...... however the building society have stated the account WILL remain open and WILL chase my ex? This is only a Full and final settlement on my liability?

 

Are they being clever and in fact closing the whole account?

 

What I’m still struggling with is how can MY name be removed from the shortfall if the account remains open? Doesn’t matter if the society are saying they won’t chase me, if this is passed on to a debt collector surly with my name in the account I will still be chased?

Edited February 11, 2018 by honeybee13
Paras

[unclebulgaria67]

Yep, i think they are being clever, because you might not pay otherwise, if you thought you were paying some on behalf of an ex.

 

I don't think they can keep the account open. You are settling on bahalf of both parties on the mortgage.

 

A bit naughty really and surely against FCA rules to send letters containing inaccurate information. If they are doing so deliberately, even worse.

[Riggers0162]

I agree,

but not surprised,

if settlement IS for both parties then I suppose so be it, but obviously I’d rather know.

 

As you say the fact they say the account will be “left open” may be the case for a day or so until then closes fully for both parties!

[ericsbrother]

if they leave the account Open then they can still pursue you and/or her.

that is the thing about joint accounts,

they are joint and several to give them a proper name

 

Each individual is responsible for the others actions either together or separately.

If they say that the debt is satisfied then there is no liability by either of you

so there is no such thing as you other halfs debt or share of debt

 

That means it is not a full and final

 

I wouldnt bother offfering a penny more than you would as a normal payment to service the debt

as you arent going to get it cleared by paying a lump sum that doesnt settle the debt in its entirety.

 

They are not being clever over tis, you are just not understanding what they have offered.

[Riggers0162]

Hi,

A little update on this,

 

Citizens Advice (after 2 days of investigating) and a conversation with The CML have all concluded I would no longer be liable for the debt provided I have this in writing.

 

This would be full and final settlement of my liability not the full debt, it it entirely up to the Society if it decides to release one party or not.

 

I approached my solicitor she believes the account would be closed anyway but if It wasn’t and it was taken to court the judge would be presented with my letter from Leeds Building Society and dismiss any claims!

 

It’s a complete nightmare!

Still very unsure!

[unclebulgaria67]

It is up to you.

 

Pay them £7k as full and final settlement of the Mortgage Account i.e all parties to the account and when you write to them, you say that Leeds Building Society by cashing the payment of £7k are accepting it as full and final settlement of the mortgage account number 12345678.

 

They will cash the payment and that is it as far as you are concerned.

 

Or don't pay them and continue to be chased over a long period. The debt will be farmed out to a DCA.