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Response to MIG Cover?

from One Angry Mother (madcow678@hotmail.com)
Stephanie,

Re the MIG issue. As the mortgage was obviously taken out such a long time ago, it is worth getting a copy of the MIG terms and conditions (check the date of any copies they send you, as many were rewritten after 1993) and the actual block policy (they probably won't let you see this).

MIGs taken out during the 80's and 90's were often sold with the salesperson stating they insured the borrower (not the lender as has been claimed since). You state that the block policy covers those named on the application forms submitted by the society. Where is this information from, have you actually seen the block policy? it implies to me that this insurance covers the BORROWER (i.e. your husband, not the lender), which would mean this portion of the debt has been paid under the insurance and the insurer cannot chase you or him under subrogation. You need to check all the paperwork regarding this issue as it can be pretty ambiguous and therefore unclear as to who is actually insured. You could ask then if the alleged debt has been lessened by payment of this insurance, or whether they are claiming on behalf of the insurers as well.

As far as admitting the debt is concerned, I would state that you did not realise your rights before paying. You could also state that they at no time helped the situation by explaining how this debt was made up and by not supplying you with all the information you need to prove this debt actually exists, and are still not playing ball by not supplying further information that has since been requested, ie. Mortgage Deeds.

Have you also asked why it took them three years to sell your property - thus adding to the negative equity. And I assume you are happy with the price they sold it for, especially as 15 grand seems to be the usual amount that repo'd properties are undersold by? I presume they have sent you documentation to prove it was a fair price and you have verified this yourself by checking other property prices around that time?

The lender probably doesn't have a copy of the Mortgage Deeds anymore. Apparently they are sent to Land Registry when the property they relate to is sold on. You can get a copy of the Mortgage Deeds by writing to the relevant Land Registry office - it costs £8.00.

Good luck.

Tracey

(posted 7676 days ago)

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