# Mortgage Write Down



## bloodyhell (26 Nov 2012)

Anyone got a template letter to send to bank to look for a mortgage write down ?


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## Alwyn (27 Nov 2012)

I would be interested in seeing a similar template letter if possible please.


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## bugler (27 Nov 2012)

I am not sure it's something that lends itself well to a template. You would want to have pretty compelling personal circumstances to receive a writedown.


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## wbbs (27 Nov 2012)

I doubt there is any template out there, it's not like every case is the same and I haven't heard of widescale write downs anyway so presumably if it happened it would not be based on one letter but as a result of numerous communications.  

Maybe if you tell us on what basis and what amount you are talking about someone could give you a suggested wording to start the ball rolling with the bank.  Which bank it is will a difference too, some are more predisposed to deals or so we are led to believe.


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## bloodyhell (28 Nov 2012)

Yes, couldn't find a template anywhere. Any write downs if any i understand would be based on not one letter but as a result of numerous communications so hopefully someone will chip in and get the ball rolling on a template for the first step of asking bank.

Have a tracker mortgage with TSB, in negative equity of about 100K and want to send a letter to see if they will entertain a write-down to come off tracker


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## wbbs (28 Nov 2012)

I imagine if you have sufficient income to continue paying the full payments there is not a hope, if however you have reduced income I still doubt it would work as even if the capital were reduced the higher interest rate would increase the payments so back to square one.

I have not heard of any bank writing off debt in return for someone giving up a tracker.


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## bloodyhell (28 Nov 2012)

Fair enough comment but i'd still like to send them some form of letter to see will they entertain any offer. You don't ask, you might not receive and all that

A generic template may even cover asking whether TSB are selling their mortgage book similar to news on BOS below

Bank of Scotland (Ireland) is attempting to sell its mortgage book here, in a  move that will mean its 80,000 mortgage holders are more likely to get a  write-off deal on their debts.
http://www.independent.ie/business/...se-struggling-on-100pc-mortgages-3302196.html

It's the wording i guess i am looking for and how to put a letter together


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## wbbs (28 Nov 2012)

Absolutely, worth asking, nothing ventured nothing gained and all that!

I have heard of Bank of Scotland offering a discount to totally clear a mortgage.


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## Importer (29 Nov 2012)

I'm not sure that writing to the bank seeking a mortgage write down is
the correct way to approach this issue.

Your first step might be to write to the bank explaining what your problem is. For example your problem might be one of the following :

1) You are not able to meet your mortgage payments from your disposable income
2) You have too many loans and are not able to pay everything back.
3) You have recently lost your job and cannot meet the repayments

Based on the above the bank is likely to ask you to make a full disclosure of all your assets and liabilities, income and expenditure  and upon receipt is likely to try and resolve the problem in one of the following ways.

1) Offer you a moratorium on payments
2) Offer you a period of interest only payments
3) Offer to extend the period of the loan
4) Offer to reduce the interest rate.
5) Offer to consolidate your loans into a single manageable payment
6) do nothing
7) Write off or write down the debt.

By far the least preferred of these options from the banks point of view is No.7. Despite what some commentators believe, write down of debt is unlikely to happen on a wide scale and in my opinion will only be relevant to the very extreme cases that are knocking on the bankruptcy door.

Writing down debt is not going to happen easily for anyone.


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## mark71 (29 Nov 2012)

After filling out a financial statement for the IBRC regarding my buy to let, they replied with a letter. The letter said they could see we could not sustain the mortgage and our options were voluntary surrender,voluntary sale or if we did not respond , repossession.
 I wrote back to them saying we were willing to do the voluntary sale with a debt write off for the outstanding amount. That was over 2 months ago and we've heard nothing since.


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