I recently had ex-partners referred to me who were having difficulty reaching an agreement for the sale of their matrimonial home.
The property was located in a region which had seen a significant economic downturn and while an offer had been made, both parties could not agree to sell, due to the significant shortfall which was going to arise to the secured lender.
The Real Estate agent was of the opinion this was the best offer out there in the current market.
Neither party were in a position to continue to meet the repayments and it was unlikely the market would rebound in the short term. The Clients were in a tough position. They considered bankruptcy was their only way forward.
After discussing their options separately it was agreed that the sale offer would be accepted and I would be engaged to negotiate a settlement with the Bank.
Ultimately, this retained control of the situation, rather than face a scenario where the secured lender took possession, and provided a scenario which could avoid bankruptcy.
With the property sold, we approached the bank with a proposal for the settlement of the shortfall.
This offer was based on their likely return should they take legal steps to recover the outstanding amount form the individuals or if they went bankrupt.
On Friday last week the bank agreed to our proposed settlement, which represented approximately 16% of the total shortfall.
Needless to say the Clients were ecstatic with the news heading into the weekend and can now move forward financially.
Please do not hesitate to contact me, if you have any Clients in a similar position or ones who are considering bankruptcy, as there are options.
It doesn’t cost you or your Clients anything but a little bit of time, but it could make a huge difference in the outcome.
Courtney.
