Negative Equity – Mortgage Shortfall Success
Negative Equity Settlement.
Our successful settlement this week comes from Northern Ireland where the property is based in an area where prices never recovered from the 2008 crash.
Our client, living in the area was suffering from a significant drop in the value in their property. Unable to keep up with repayments, they considered selling their property and starting over, but when faced with the levels of negative equity they could afford to pay the shortfall.
Time was a major player in this case, with our client unable to afford repayments and unable to settle the debt, We negotiated an affordable and minimal monthly payment plan that was feasible for Client to allow them time to gather settlement funds.
As they sold the property, over £70k was left in the shortfall, and during the period of minimal monthly repayments, negotiations took place to enable to enable a full and final settlement.
After persistent negotiations, we settled on £4k, resulting in savings of c£66k for our Client and a full and final settlement figure of 5.7%.