Help! I have done OK so far but am not really sure where to go from here! In February 1996 we handed the keys back to the Coventry Building Society after two years of trying to persuade them to let us sell the property with the negative equity and move to a smaller property taking the negative equity with us. We have been in rented accommodation since then although we have moved three times but always within the same local area. On 10th July 2000 I received a letter out of the blue saying that I owed the Coventry #48,682.45 being the shortfall on the Mortgage. We were totally stunned as we had heard nothing in the meantime and thought the debt had been paid off by the MIG.(posted 8605 days ago)They sold the property for #87,995.00. I have written back to them asking why is has taken them so long to write to us as we have always been on the electoral role and had a redirection on all of our properties. I have asked why they are only writing to me when my husband and I held a joint mortgage. I stated that I feel the property was undersold for a "quick sale". I asked why the MIG we took out at their insistence at the start of the Mortgage had not covered the shortfall as we had been told it would do. I HAVE NOT FILLED IN ANY INCOME AND EXPENDITURE FORMS - AFTER READING YOUR SITE I AM SO GLAD!!! They have written back stating that: They are willing to accept a lesser amount in full and final settlement or monthly repayments!
The MIG did pay out #24,830.28 but that it does not cover us and that they still have to chase us for the full amount.
They have no obligation to contact us straight away - as long as it is within the six year period.
They only wrote to me as I was the only one who appeared on the electoral register which is untrue as my husband and I have both voted from this address. (Incidentally they have still only written to me despite the fact that the last letter was sent by myself and my husband and I confirmed that he was living here.)
They enclose copies of the two valuers reports which value the house at #85,000 and #80,000 so they say that they received a good market value at #87,995.
I have spoken to a local estate agent who has written me a letter to send to them enclosing details of properties similar to ours which were sold at that time for between #90,000 and #104,000. I have not forwarded this on to them yet.
I asked for copies of authorisation from Eagle Star to chase us for the #24,830.28 paid out on the MIG policy but they have refused saying that the details of the arrangement are confidential between the two parties.
They say nothing about the misinformation given to us about this policy when it was taken out.
They say that there is no record of us handing in the keys. They say the property was abandoned. Unfortunately we have no receipt for handing the keys in.
They say that none of the points we have raised have any legal foundation and they now want us to come to some arrangement.
What do I do now? My husband and I just want to put this whole thing behind us and get on with our lives but obviously we do not have this sort of money hanging around. We also feel very strongly that if the Coventry had listened to us back in 1994 we could have sold the property for a much higher price, taken the negative equity with us and repaid the amount owing to them whilst our overheads were much lower. We are in rented accommodation and have no assets. We are both currently working - my husband for his own company so he is not in effect self-employed. Is it worth fighting this or should we come to an arrangement? If we do settle for a smaller amount how much should we offer? Should we offer it or wait until they ask for an amount?
I would be very grateful for any help or suggestions on what to do next?