Author Topic: mortgage insurance debt  (Read 503 times)


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mortgage insurance debt
« on: Oct 26, 2011, 06:18:31 PM »
hi everyone,

lost my house 20yrs ago, loads of debt but over the years have paid them all off, apart from this mortgage insurance that pays the mortgage lender on the repossession of the house.
it started at around 10k but is now down to 3k, about 1 year ago i lost my job and stopped paying it, now they have finely sent me a letter
demanding the 3k.
is it law for me to have to fill out the means test the solicitors acting for the insurance company as sent?
would it be worth making an offer and if so how much?

James Falla

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Re: mortgage insurance debt
« Reply #1 on: Oct 27, 2011, 02:22:22 PM »
Hi choco
If you want to try and agree a monthly repayment deal or a one off payment settlement, it is perfectly reasonable for any creditor (or their agent) to ask you for information about your personal financial situation particularly your income and living expenses. In this way they can establish whether the offer you are making is reasonable. If the £3k debt has remained unpaid for some time the creditor could well accept a settlement offer if they think it is all you have got. I would offer £1000 (30%) and see how you go. You might get the job done but be prepared to pay up to 50% (£1500).
Debt Expert & Author