I have been dealing with an ongoing claim regarding my mum following repossesion. Eversheds and Client (Abbey) have accpeted our offer however i have recieved a pre liminary letter that seems to have loop holes and still leaves my mother open to liability. It states "should there be addfitional security linked to mortgage or assigned to client (abbey)client retains right to such security" "the settlement reached is in satisfaction of your liability alone under the terms of mortgage deed" (does this mean they can pursue later for my late father??

What is the best thing to do? All help is appreciated Thanx

-- Fal (Fal.patel@tiscali.co.uk), April 07, 2004

Answers

Hi Fal,

I remember reading your previous postings - So youve got a settlement from them - hope its in your favour,

anyhow heres answers to your queries

This is standard Eversheds settlement wording - dont panic - unless your mum has other finance by Shabbey Abbey she has nothing to worry about with the first part.

The second 'bit' hmmm good question, but i can say straight away that if your father left no assetts upon death your mum will be fine signing.

If he did leave assetts: although, I have never heard of a lender attempting to claim a shortfall debt from a departed persons estate. I would suggest as a precaution you seek legal advice from a solicitor with inheritance and probate knowledge prior to your mum signing on the dotted line. I also think their is a limitation period for any potential claim to be made on someones estate after death.

Hope this helps

-- who?? (who@idontwanttosay.com), April 07, 2004.

Fal,

The following letter (from a solicitor) should help.

PRE SETTLEMENT LETTER

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:

Your Name:

Your Address:

Date:

Name of Creditor:

Address of Creditor:

Without Prejudice:

Dear Sir/Madam

Account No._________________________________________________________________

I write with reference to the money which you are claiming on the above account. This letter does not constitute an admission of any liability and is not an acknowledgment of the debt.

Further to our agreement on full and final settlement of my mortgage shortfall liabilities for the sum of £00.00 (+ spell out in words), I am now ready to pay over the money on an 'ex gratia' basis.

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 foward to me a certificate of satisfaction following receipt of the agreed payment.

Payment can be made within (Put the number of days or weeks within which you will pay) of receiving your written agreement of this offer and method of payment.

I look forward to receiving your reply.

Yours faithfully

(your signature)

-- M Amos (idgroms@hotmail.com), April 10, 2004.