Hi All

Sorry about yet another question - but can anyone decipher the following speal:

We can confirm that our client are prepared to accept the sum of £xxxx in full and final settlement of your liability from the sale of xyz.

We would advise that this arraangement is conditional upon receiving the cheque by the "date". In the event that we dont receive we will withdraw the offer.

Acceptance of the agreement sum in full and final settlement of the debt due to the bank after realisation of any security held by the bank, whether heretible of collateral, at the time of acceptance or any time over the duration of the mortgage, unless specifically agreed otherwise by the bank, and in writing.

The settlement that has been reached is in satisfaction of your liability under the terms of the mortgage deed.

Further to this letter I paid the sum, this was a joint mortgage so my ex partner may have dealt with them - there was only one house involved and I have rented since.

But feel wary that the conditions above are not clear so would appreciate any advise

Thanks - Marne

-- marne small (marne_s@hotmail.com), September 10, 2003

Answers

Sorry please accept the correct version of the letter

Hi All

Sorry about yet another question - but can anyone decipher the following speal:

We can confirm that our client are prepared to accept the sum of £xxxx in full and final settlement of your liability from the sale of xyz.

We would advise that this arraangement is conditional upon receiving the cheque by the "date". In the event that we dont receive we will withdraw the offer.

Acceptance of the agreement sum in full and final settlement of the debt due to our client is in respect of such sums due to the bank after realisation of any security held by the bank, whether heretible of collateral, at the time of acceptance or any time over the duration of the mortgage, unless specifically agreed otherwise by the bank, and in writing.

The settlement that has been reached is in satisfaction of your liability under the terms of the mortgage deed.

Further to this letter I paid the sum, this was a joint mortgage so my ex partner may have dealt with them - there was only one house involved and I have rented since.

But feel wary that the conditions above are not clear so would appreciate any advise

Thanks - Marne

-- marne small (marne_s@hotmail.com), September 10, 2003.

Put simply this means that you must pay the settlement by the date specified and that long winded bit in the middle means that they also intend to use any additional security such as an endowment or other linked product towards the shortfall. If there was no endowment or other linked product that they can cash in then it is straight forward. I dont know the collector or agent who is sending you this but it sounds very similar to what Eversheds put in their settlement agreement letters. You would be perfectly within your rights to ask for a full explanation from the writer of that letter as to what is actually meant by it. Do not sign anything or finalise anything until you are 100% sure of what it means. Hope this helps. L

-- Lexie (lexie.fabriane@ntlworld.com), September 10, 2003.

Marne,

I don't know what you put in your settlement letter but you may find the following solicitor's advice of interest,.....

We need to make a distinction between a letter which is negotiating a full and final and a letter confirming the terms of a full and final which has been agreed.

After an agreement has been reached but before any money is handed over, I usually suggest that a letter is written along theses lines:

"Further to our agreement on full and final settlement of my mortgage shortfall liabilities for the sum of £xxx (+ spell out in words), I am now ready to pay over the money on an 'ex gratia' basis. Also make sure any letter has "Without prejudice" on it.

Before I do this I would be grateful if you could confirm in writing that the sum is acepted in full and final settlement and full satisfaction of all liabilities under and relating to the mortgage, however arising. Please also confirm that you will make an entry on my credit reference file and the mortgage possession register to the effect that the debt has been satisfied, and that you will forward to me a certificate of satisfaction following receipt of the agreed payment".

Mark.

-- M Amos (idgroms@hotmail.com), September 10, 2003.

Hi

Well when I paid, I didnt put "Please also confirm that you will make an entry on my credit reference file and the mortgage possession register to the effect that the debt has been satisfied, and that you will forward to me a certificate of satisfaction following receipt of the agreed payment" so I didnt get a certificate of satisfaction, this was some time ago - is it too late to get this done?

-- marne small (marne_s@hotmail.com), September 10, 2003.

Marne,

What can you lose by trying ?

Mark.

-- M Amos (idgroms@hotmail.com), September 11, 2003.

Have contacted Eversheds - they are surprised there is still an entry outstanding (debt not cleared) and will re-contact Equifax. But they did send a letter to me acknowledging receipt in full and final, etc.

Certicate of satisfaction is only for cases with CCJs, aparently.

-- marne small (marne_s@hotmail.com), September 11, 2003.

Just double checked the Certificate of Satisfaction issue with a solicitor, he said:

Yes, this is normally the case. What is normal is for the lender to mark the debt as satisfied on the person's credit file.

Good Luck for the future Marne.

Mark.

-- M Amos (idgroms@hotmail.com), September 12, 2003.

Thanks Mark for your time, and effort helping me with my questions.

It is really appreciated. Just waiting for the desicion on the mortgage now - cross fingers!

Regards

-- marne small (marne_s@hotmail.com), September 12, 2003.