Hi,
My neice and husband plus two kids are emigrating to Australia soon. Their house is in positive equity, and is being put up for sale. No difficulty selling, and a sale, for a decent price, should be completed within 6/8 months. There will be sufficient monies to redeem the mortgage and pay their short term debt - CU 25k, CC 7k, and two other small loans totaling 12k. However, the lenders of the short term debt will not accept Solicitor's undertaking that the all debts will be discharged from proceeds of house sale. They have all indicated that they will proceed to a legal process within 28 days, and some of them have already issued notices to that effect. My neice does not want to leave a mess behind, and would like to protect her credit rating and borrowing capacity, should she ever return. My understanding is that the best outcome for the creditors from the court process would only be a judgement against their property anyway, but surely this is the same outcome as the one being offered by her Solicitor. This whole process will cost 000's, will cause alot of anxiety, and with no real gain for anyone, except the legal people. Can anyone offer some ideas or advice on how best to resolve with the situation.
My neice and husband plus two kids are emigrating to Australia soon. Their house is in positive equity, and is being put up for sale. No difficulty selling, and a sale, for a decent price, should be completed within 6/8 months. There will be sufficient monies to redeem the mortgage and pay their short term debt - CU 25k, CC 7k, and two other small loans totaling 12k. However, the lenders of the short term debt will not accept Solicitor's undertaking that the all debts will be discharged from proceeds of house sale. They have all indicated that they will proceed to a legal process within 28 days, and some of them have already issued notices to that effect. My neice does not want to leave a mess behind, and would like to protect her credit rating and borrowing capacity, should she ever return. My understanding is that the best outcome for the creditors from the court process would only be a judgement against their property anyway, but surely this is the same outcome as the one being offered by her Solicitor. This whole process will cost 000's, will cause alot of anxiety, and with no real gain for anyone, except the legal people. Can anyone offer some ideas or advice on how best to resolve with the situation.
