# Want to sell home in negative equity



## becky_1979 (10 Sep 2012)

I am looking for any opinions on this, I really want to sell my house, but house is in negative equity, I bought in 2008, Mortgage is with UB, outstanding mortgage is 164,000, and I would be lucky to get about 110,000 for house now.  Are any of the banks allowing people to sell &  convert the remaining mortgage into a loan? I am desperate to move out of this house & renting it out would not be an option as the rent received would only cover half the mortgage repayments.  Any advise greatly appreciated.


----------



## Shano (12 Sep 2012)

I think the banks are doing deals but not really publicizing it.

I am aware of a house sold this year where the vendors were in negative equity of about 200k and they got 2 personal loans on it (they had split up)

My solicitor has also dealt with cases recently with people getting the negative equity amount as a personal loan


----------



## becky_1979 (13 Sep 2012)

Shano said:


> I think the banks are doing deals but not really publicizing it.
> 
> I am aware of a house sold this year where the vendors were in negative equity of about 200k and they got 2 personal loans on it (they had split up)
> 
> My solicitor has also dealt with cases recently with people getting the negative equity amount as a personal loan



Thanks for the reply.  I really hope the bank allows me to sell.


----------



## trish2013 (2 Oct 2012)

I'm with UB also and was in talks with the in last few days.  I am in negative equity of about 60k.. they told me they would allow me to sell and buy again, bringing in of course the negative equity to the new mortgage.


----------



## darkbeatz (8 Oct 2012)

You should have a read of link in key posts by Brendan called "I want to sell my house in negative equity"


----------



## Bronte (9 Oct 2012)

trish2013 said:


> I'm with UB also and was in talks with the in last few days. I am in negative equity of about 60k.. they told me they would allow me to sell and buy again, bringing in of course the negative equity to the new mortgage.


 
You really really need to think this through, make sure you do the sums, not sure that NE mortgages are a good idea.


----------



## darkbeatz (9 Oct 2012)

Bronte said:


> You really really need to think this through, make sure you do the sums, not sure that NE mortgages are a good idea.



why do you not think the NE mortgages are a good idea?


----------



## CadillacMan (11 Oct 2012)

It was possible for us to do this earlier in the year.  We had about half the amount of NE that you have.  We told our original lender what we wanted to do.  They said they would consider allowing us sell if we met a set of criteria outlined by them.  One of the criterion was getting an offer and having a draft contract for sale.  Looking back, I think they believed that we would never get a buyer for our home.  However, I think our timing was good and the market was starting to turn because we got an offer of full asking price in less than 2 weeks.  The bank stalled for a while, added new criteria (e.g., wanted to know what the mortgage for the new house would be as we were trading up) and when there were contracts for sale and purchase waiting to be signed they turned us down.  We appealed the decision on the basis that we had incurred a lot of expense meeting the conditions set out by them and they reversed the decision.  it was a nerve wrecking couple of months but we are in our new home now and are confident we made the right decision.  Like you, if we had tried to rent a property similar to the one we are in now while renting out our old property we would still have had to put half toward the old mortgage repayment.  It would not have been viable in the long-term.  From personal experience I think that negative equity mortgages make sense for some people depending on circumstances. Good luck.


----------



## becky_1979 (17 Oct 2012)

Thanks for the input everyone!  Good to know it might be possible!  I have wrote to UB this week, so just hoping that they will let me.  I know its probably not the best idea to try to do this, but we feel like its our only option right now as things are that bad in our current house.


----------

