Does anyone remember Union Finance? In the mid ninties they encouraged negative equity victims to hand in their keys to lenders, on the promise that lenders could claim against their indemnity insurance to cover any shortfall. UF claimed that borrowers thus would not have their credit status damaged or be pursued by lenders.

Anyone know of any cases involving people who went down this road?

-- John Casey (johncasey10@hotmail.com), January 14, 2001

Answers

I'm afraid I can't answer your specific question but I do know that there is a discussion of Mortgage Indemnity Guarantees (MIGs) - which you call 'indemnity insurance' [I guess they're the same] - on this HRP site. If memory serves it's to be found in the 'Repossession' section, in the piece headed 'Why lenders refuse to supply documents'.

-- Eleanor Scott (eleanor.scott@btinternet.com), January 14, 2001.

Union Finance crops up in several parts of the site but there is a large chunk of material about its arguments in the Repossession section in a piece headed "Mortgage Indemnity Guarantees".

Lee

-- Lee (repossession@bigfoot.com), January 19, 2001.