3rd Party Negative Equity Negotiations

The Key Issue

A young family with a newborn found themselves in a challenging financial situation. Struggling to keep up with their mortgage payments, they made the difficult decision to surrender their property to the lender due to negative equity. However, this decision left them with an unaffordable crystallized shortfall of £70,000.

Why The Client Came To Us

Despite our clients’ reasonable settlement offers, the third party consistently rejected them. Faced with the prospect of bankruptcy, the clients were prepared to take that route. However, due to court delays during the summer recess, they decided to make one final settlement offer.

The main lender transferred the debt to a third-party collection agency, which proved to be a significant hurdle. Recognizing the need for professional advice, the clients sought our assistance.

What We Did

Recognising the difficult nature of this third party, we started with a fresh perspective and started negotiating with a view to securing a settlement that benefitted both the creditor and client.

Proactive Engagement and Negotiation: We were appointed to enter negotiations on their behalf, aiming to resolve the outstanding debt. Despite initial rejections, our debt strategists engaged in protracted negotiations with the lender, demonstrating persistence and cooperation.

Successful Settlement and Savings: Through our dedicated efforts, a settlement offer of £8,000 was eventually accepted, resulting in substantial savings of £62,000 for our clients. This successful resolution not only helped them avoid bankruptcy but also provided significant relief from their debt issues.

The Outcome

As mentioned, we achieved a settlement of £8,000. Our clients were overjoyed to finally be relieved of their debt burden and avoid the negative consequences of bankruptcy. This case highlights the importance of seeking expert advice when facing property debt. At Bell & Company, we understand the complexities of such situations and offer our clients tailored and knowledgeable guidance. This allows us to get settlements, like this one, where no one else can.

If you or anyone you know is experiencing property debt or facing the prospect of bankruptcy, don’t hesitate to reach out to Bell & Company today. Our team is ready to provide expert advice and help you navigate through these challenging circumstances.