Sorry to bother you all, but I have read a great deal of stuff on the site relating to full and final offers..most of which seem to be accepted by other lenders at around 5 or 10% - I was hoping my f & f with Natwest may well have fallen into this category, but no such luck..

Is it common for lenders to negotiate at this percentage? What could the bank define as a f & f? Would going bankrupt be an option?

Apologies if this seems a little vague..bit up in the air at present..

-- Paul Kempton (pkmookster@hotmail.com), January 15, 2003

Answers

Paul,

As you have seen yourself many lenders have been settling for between 5 - 10%, so yes, I would consider it is quite common. As for what the bank or building society defines as a f&f settlement that could be anything up to the full amount they are claiming, they aren't under any obligation to reduce it. Although where a property has been sold at an undervalue this could possibly be used as a counterclaim in court (there is an article by a barrister on that).Perhaps someone else who has had dealings with Natwest can give you some advice? Have you followed the advice on the Home Repo site (the Do's and Don'ts etc) and put the bank to strict proof of the alleged debt? Did they sell your property for a fair price? If they didn't then you can use this to negotiate a better settlement. Have you checked whether the debt is statute barred or whether the 6 year voluntary code applies? Bankruptcy is an option, especially if you have no assets. Before taking this option though try offering the bank 370pounds (the cost of going bankrupt) on a take it or leave it basis, a number of people have settled this way. In 2004 when the Enterprise Bill comes into force regarding bankruptcy, a bankrupt will be discharged from somewhere between 3-12 months (providing nothing fraudulent has taken place) and a lot of the archaic restrictions will be removed too. Good Luck.

Mark.

-- M Amos (idgroms@hotmail.com), January 15, 2003.