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Response to Why do I keep reading about agreed settlements on this site.

from pendle (pendle@amun-ra.demon.co.uk)
In many cases, the shortfall amounts being claimed by the lenders is significantly higher than it ought to be. Most of the time, properties are being sold at way below their market value, the agents fees and other fees being charged during the sale of the property are also suspicious and in many cases inflated.

To obtain a reasonable settlement figure, the borrower needs to be sure that the house was sold at the best price possible, ie the market value, and that any other fees are fair.

Unfortunately, lenders are reluctant to release information on how they marketed the properties and provide invoices for other fees, prefering to engage solicitors to make threats of court action if the borrower doesn't play ball. This leads to a stalemate which many of us are in.

If once a shortfall figure is justified, then negotiations can start to reach a settlement. In some cases, where a lender runs the risk of being proved that they acted inproperly, they can be willing to cut the shortfall figure to a small amount which the borrower would be willing to pay.

Its all about making sure that what you're being asked for is properly justified, unfortunately its not that simple.

Hope this helps

Pendle

(posted 8482 days ago)

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