You would need to give us some more background in order to give you a clear directive.(posted 7763 days ago)Did you have a Mortgage Indemnity Insurance? If so what were you told it would cover you for if you defaulted on your mortgage?
Was you home sold for the market price and if not did the lender make efforts to ensure the best price was secured?
They really have to provide supportive evidence and documentation in support of any alleged debt and until they do, do not admit any liability and do not provide them any written or oral personal details regarding your financial statust etc.
If you have not served a sarn on the lender and any their agents who are in communication with you....do so now by recorded delivery.
The endowment side of it I don't know much about this but it would I think be considered an asset and obviously the lender will be aware of its' value. Maybe you should check around the different companies who buy endowment policies for the best surrender value and keep it close to your chest if a company offers more that what the lender thinks it is worth. That way you might be left with something if you negotiate (eventually) a settlement with the Lender.
Hope this helps but study the info on the site for reliable advice.
M