Mediation: Financial Dispute Repossession case study
- Financial disputes include repossessions, the claimant bank was suing the defendant for £220,000 for the outstanding difference between the value of a property and the mortgage arrears when the property had been repossessed.
- For years the defendant heard no more, until she married whereby her husband put her on his mortgage. The bank were now demanding their money, stating that the defendant had an asset which she could derive monies from to pay them off, and or they would look to put a charge over the property. The defendant advised technically the property was not hers, it was her husband’s. Several joint meetings and private meetings between both parties and their legal teams ensued, whereby finally an agreement was brokered to pay the claimants an initial lump sum the remainder to be in monthly instalments over 25 years, equally the defendant got a £70,000 discount due to the bank’s generosity, through mediation they could clearly see getting £150,000 was better than getting nothing, as well as risking this matter at a trial.
Facts & figures
- The mediation took 1 day compared to the 3 years this financial dispute had already gone on.
- The mediation cost each party £950.00. A good result for both parties when compared to the thousands that they would have spent on legal fees had they continued with Court action.