My daughter handed back their house keys 6 - 7 years ago. The Nationwide has just written and asked them to settle the debt which stands at #23,400. They have said that they will accept a minimum of 15% (#3450). Does anybody know 1. Will they accept less than 15%? 2. Once settled, are there likely to be any more problems? 3. If so, what should they do to prevent this?

-- Rob Sowerby (Rob@sowerby.freeserve.co.uk), July 09, 1999

Answers

Hi Rob,

Have you used the Shortfall Arrears Advisor tool in the Who Helps? section? It will give you as as good an idea as we have on whether the Nationwide will accept more or less than 15% in your daughter's particular circumstances.

As for whether there will be any more consequences after settlement, it's impossible to say. Success story 4 on the front page relates one reader's story of how he tried to make sure his lender didn't come back for more after agreeing a "full and final settlement".

Lee

-- Lee (repossession@bigfoot.com), July 10, 1999.

It really depends on your daughter's circumstances. Whether she is working, if so what type of income she has etc. If she draws up a financial statement and things look really 'bad' I have known many lenders to take less than 2%. I have never had a case where a client pays more than 5%

-- Adrian Davies (adrian.davies@dial.pipex.com), July 13, 1999.

They settled for #1,000 finally

-- Rob Sowerby (Rob@sowerby.freeserve.co.uk), October 22, 1999.

A month or so back I read a newspaper report that a man had got the lender to settle for #500. I think he had worn them down over the valuation or somesuch, and was prepared for brinkmanship. I wish I'd kept the article, but I didn't know I was going to need it - Eversheds wrote to me a coupld of weeks later, chasing a 5+ year old shortfall. Does anyone know the case I mean? well done, by the way.

-- Eleanor Scott (eleanor.scott@btinternet.com), July 06, 2000.