Clients save £98,000 due to GDP Mediation
In May 2019, a local couple approached us with an investment property that had fallen into serious negative equity due to the mortgage payments becoming simply unaffordable as a result of the property constantly becoming vacant.
Our first aim during our initial free consultation meeting was to take stock of all the financial information available in order for us to provide our clients with the best possible advice.
The mortgage was £210,000 and the property was worth around £100,000. Therefore, we knew that the best strategy would be to go through the consensual sale at shortfall process with the lender and mediate on any mortgage shortfall owed post sale.
After a month on the market the property managed to sell for £100,000. We then had to deal with the shortfall figure owed totalling £110,000.
Thankfully, due to many years’ experience of engaging with the lenders and building relationships with them, we were able to reach a satisfactory solution for all parties and a third-party full and final lump-sum offer of £12,000 was accepted.
Our client was delighted with this outcome and the speed that it was achieved. If you have a negative equity issue of any debt related matter, then simply pick up the phone today and call our team on 028 92444555.
Case Study Summary
Creditor: UK Bank owed £110,000 after agreed consensual shortfall sale
Proposal: Third-Party full and final lump-sum proposed to settle shortfall
GDP Mediated Settlement: Bank accepted £12,000 in full and final settlement (10.9p in the £)
Settled: September 2019