Your Reference
In reply please quote
7th May 1997

Dear Mr

Case No:

Security Address

I regret to advise you that following completion of the sale of the above property, the proceeds of sale were insufficient to repay the outstanding mortgage in full. The property was sold for £5750.000, leaving a shortfall of £36,577.

Although a mortgage indemnity claim of £8896.000 has been submitted, the Mortgage Indemnity Insurers have a legal right to recover the amount of the claim and have requested the Society collect this amount on their behalf.

The Society would therefore like to enter into discussions with you to see how this sum may be repaid as you remain liable for the full extent of the debt. In the event that the Society should agree to limit your liability in any way, this would be on the understanding that any agreed repayments were satisfactorily maintained and your agreed liability repaid in full.

It is appreciated that you may well be unable to clear this shortfall in one payment but if you are able to do so, the Society may be prepared to waive a proportion of the shortfall as an incentive to adopting this course of action.

If you are however unable to clear the shortfall immediately, the Society is prepared to enter an arrangement whereby this sum is cleared over a period of time by monthly instalments. Provided the monthly instalments are maintained to the Society's satisfaction, additional interest will not be charged on the outstanding debt.

As the Society is not aware of your present circumstances, I enclose a monthly income and expenditure form for completion, which will assist you in determining the level of repayment that you can afford. It is essential that you make contact with the Society in order that full consideration may be given to you current circumstances. Your failure to do so will leave the Society with no alternative but to consider taking legal action. Any costs incurred by the Society in recovering this shortfall may be added to the outstanding debt, together with interest at the full statutory rate.

I look forward to receiving your proposals together with the completed income and expenditure form and would ask you to ensure that your case number, , is quoted in all correspondence.

Yours sincerely

(Signature)

Gary A Flynn
Loss Recovery Administrator
Loss Recovery Unit

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