Navigating the Negative Equity Storm: Savings of £221,627 & Family Home Retained

This case exemplifies why we do what we do here at Bell & Company. Referred by a previous client of ours, this client’s journey highlights the critical importance of our service standards. By intervening at a crucial moment, we not only resolved his financial predicament but also safeguarded his valuable assets. His satisfaction, coupled with referrals from satisfied clients like him, serves as a testament to the effectiveness of our approach…that’s enough about us.

Our client’s journey exemplifies the resilience required when facing financial turmoil amid personal struggles. Tasked with servicing mortgages on three properties for a decade, our client’s health suffered under the weight of mounting stress. Knowing he could no longer bury his head in the sand, he sought relief from the burden that had consumed him for years.

Property Repossession & Debt Accumulation

As Covid-19 gripped the world, our client’s situation worsened. All three properties which were sitting static for a period of three years, were repossessed just as the pandemic struck, leaving him in a precarious position. Our client was under the belief that the total debt amount was £118,563.00 however following the repossession the crystallised shortfall amount was £311,827.00, our client was struggling to process the drastic increase. Despite the challenges, our client remained determined to find a solution, recognising the importance of protecting his family’s future.

Bell & Company were appointed, and we immediately intervened, starting by laying out our client’s financial position and assisting in organising his financial documentation, a task that had been delayed by our client for years.

Our client put his buy-to-let property that was in positive equity on the market in a bid to raise funds to settle the crystallised shortfall. The pandemic saw weakened market conditions and interest for the property was slower than usual. The creditors on the other hand were growing increasingly impatient and set out to pursue our client’s residential property. We negotiated on the basis that repossessing our client’s family home, his most equitable asset, would have drastic consequences to our client’s health as he underwent major surgery whilst the sale of property was being managed by an external party, we also advised all sale delays were out our client’s control due to the timing of repossession aligning with the pandemic, it was our role to keep the creditors at bay and buy our client further time to sort out his affairs.

The Outcome

The road to resolution was not without its obstacles. Covid-19 delays posed significant challenges. However, through open communication and steadfast support, we guided our client towards a positive outcome, our client sold one of his buy-to-let properties that were in positive equity to assist with settling the crystallised shortfall, with this our team proposed an offer of £90,200.00 to settle the £311,827.00 liability, this was ACCEPTED with total savings achieved of £221,627.00.

This case study serves as a testament to the importance of seeking help in times of crisis. By facing challenges head-on and leveraging the support of trusted advisors, individuals like Andrew can emerge from adversity stronger than ever before.

Are you ready to deal with your property debt issues today?

If you or someone you know is struggling with financial burdens, especially amid personal challenges, don’t hesitate to reach out for support. Contact us today for a free initial consultation and let us help you navigate toward a brighter financial future.