Bank clearing the decks: £500k PG settled for £20k
The client already had a formal signed arrangement with the bank effectively admitting liability in excess of £500k with a consensual charge on the residential home.
There was only a maximum of £100k equity in the property, although it would provide some recovery for the bank on sale.
The matter was in our hands as our client's ability to earn was hampered by the fact he was undergoing protracted treatment for cancer and we therefore negotiated a nominal monthly payment at a much reduced sum than was previously agreed.
There were potential contentious issues we could have argued but in view of the signed agreement and our client's limited funds these were alluded to with the bank but not forced.
After reviewing the matter with the bank on a six monthly basis, it became clear in the third year that they were looking to close down their book and would be open to considering offers with that in mind.
An offer of £20k was accepted by the bank and in accordance with the full and final settlement the bank removed the charge on the property.
13 March 2015 By Mel Loades