# Bank proposing ridiculous conditions to allow me sell a house in NE



## gears303 (9 Dec 2013)

I own a house that i have been trying to sell for some time.
The asking price is 2/3 of the remaining mortgage, but i want to sell and am willing to pay off the remaining debt.
I received an offer for the asking price, and asked my bank if they are willing to sign off, and move the remaining debt to a loan, on standard mortgage variable rate.
They agreed to give me a loan at mortgage variable rate, but insist I put up cash of 1/2 of the debt in escrow, to guarantee i will pay the loan. This amounts to over 30k.
I don't have savings anywhere near this, and when i told the bank officer i was advised to borrow it from a relative. 
I have perfect credit rating and no other loans. I have never missed a mortgage payment.
I have a full time job and my yearly salary is in excess of the debt, but it would take me a long time to save 30k, while covering the full mortgage repayments.
I thunk this is totally unfair and they are holding me to ransom.
Requesting i put up 30k of cash against a 60k loan, and forcing me to borrow in the process.
I don't know what to do and would appreciate any advice you can give.


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## ryaner (9 Dec 2013)

The banks aren't thinking when it comes to stuff like this. One person I know of has 2 buy to lets. Bank refused to let him sell both of them. 

One was going to sell just above the outstanding mortgage amount and the bank were told all the funds would be used to cover outstanding debts. 
Second one was going to sell below mortgage amount but with an offer to transfer the remaining amount to a personal loan over 12 months. 

The unofficial reason given was that they just aren't interested in crystallizing any loses, even if in this case they wouldn't end up making a loss as the whole debt would be paid off.


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## Brendan Burgess (9 Dec 2013)

Hi gears

If you have savings, you should use them to pay down the mortgage shortfall. It makes no sense to borrow at SVR  while keeping money on deposit.

Tell your solicitor to threatedn a Section 94 application. 

http://www.askaboutmoney.com/showthread.php?t=183813

Brendan


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## Brendan Burgess (9 Dec 2013)

> I have perfect credit rating and no other loans. I have never missed a mortgage payment.



It's sad to say that this may be the problem. If you were in deep arrears, they would be writing to you telling you to sell your house or seeking to repossess it. 

If you can't sort it out with them, then maybe stop paying the mortgage. Tell them that you are doing so to save up the €30,000. Stupid I know, but a last resort if you can't get anywhere with them.


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## Gerry Canning (9 Dec 2013)

GEARS303;

Make sure you keep a note/time/person you were dealing with in the Bank. It irks me for them to use the (relative)routine.

Suggest put in writing what you asked them to do . Do that in a factual manner not in an irate manner.
Do not stop paying the mortgage ,as there is little point in sullying a good credit rating.
You are in the (happy) position of having savings, so you have good cover on house repayments. 

On the plus side , properties have stopped falling so maybe your (friendly) Bank might inadvertently be doing you a medium term favour!

I cannot overstress keeping notes on any Bank dealings .


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## gears303 (9 Dec 2013)

Thanks a million to all for your suggestions.

I am getting married in the coming weeks, and the savings i speak of, are 10k on deposit  in the same bank. 
So, its not an option to place this in escrow or pay money off the mortgage - i would just have to borrow against the wedding at a higher rate.

Communication to date has been over phone. I'm going to write to the bank today so there will be a record.

Hearing the stories above, and the way they are handling this, just makes my blood boil!


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## Gerry Canning (9 Dec 2013)

Gears303;

Enjoy the wedding.

Dont get angry with Bankers , they are and were clueless , they are still in denial mode and know no other way ,other than the flawed mind sets that most of them cannot escape from.


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## Brendan Burgess (9 Dec 2013)

Hi gears

I think that your letter will just go into the system.

You are much better off getting your solicitor to threaten a Section 94 application.

You are going to lose the offer on your house if you wait for the bank to respond to your own letter. 

Brendan


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## Kine (9 Dec 2013)

Brendan Burgess said:


> You are going to lose the offer on your house if you wait for the bank to respond to your own letter.
> 
> Brendan


 
+1 I've been waiting since September 2011 for an official response!


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## Brendan Burgess (9 Dec 2013)

Kine have you threatened Section 94?


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## breakonthru (10 Dec 2013)

ryaner said:


> The unofficial reason given was that they just aren't interested in crystallizing any loses



I have no advice for the OP, but agree with 'ryaner' that the banks are loathe to crystallise losses. 

I owe 1.2 million, haven't paid a cent in capital back..  Only pay interest, even when they 'demanded' cap plus interest.

Nothing much they can do; have shown them a 'credit-line' statement from father-in-law that we'll be funded during bankruptcy in UK - if that's what we have to do to rid ourselves off these loans.

So, in truth, negative equity has been a big plus in our situation as they just have to put up with interest payments until property appreciates to equal loan.


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## Kine (10 Dec 2013)

Brendan Burgess said:


> Kine have you threatened Section 94?


 
Not yet Brendan - the negative equity is sizeable and I was hoping to have this dealt with before crystallising it. Having an unsecured loan (I can't service) where the Bank will get a judgement against me isn't ideal.


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## gears303 (13 Dec 2013)

Gerry Canning said:


> Gears303;
> 
> Enjoy the wedding.
> 
> ...


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## gears303 (1 Apr 2014)

Update on the post: 
I refused their original request for security on the negative equity and after 1 month they came back and asked me to fill in a standard financial statement and submit a  proposal for the residual debt. It took a further 4 weeks for them to process this, before they agreed to the sale, on the condition they get the gross proceeds.  I've appealed their decision and requested I pay them the net proceeds [the costs of Sale are about 5000 for engineer, auctioneer and solicitor fees], and pay off the residual debt over 5 years. 
Negotiation seems to have paid off.
Thanks to all for your help and feedback


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## Gerry Canning (1 Apr 2014)

I keep hearing anecdotally of customers not engaging with Mr Bank .
But I keep hearing on AAM of Banks not engaging sensibly with customers.

gears303 , should not have been pushed into an understanding of how to sort things.Surely Mr Bank should have had the gumption/professionalism to aid him?

 Again I see  AAM,s good work/advice, doing for gears303 ,what Mr Bank should have done..


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## Bronte (1 Apr 2014)

Gerry Canning said:


> I keep hearing anecdotally of customers not engaging with Mr Bank .
> But I keep hearing on AAM of Banks not engaging sensibly with customers.


 
It's very odd Gerry isn't it.  Some of the stories on AAM are horrific.


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## cremeegg (1 Apr 2014)

gears303 said:


> and the savings i speak of, are 10k on deposit  in the same bank.



Just a small point, but if it were me I would move the savings to another bank.


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## 44brendan (1 Apr 2014)

Yes good advice. A "bankers right of set-off" could be used to grab these funds!


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## Gerry Canning (1 Apr 2014)

Brendan; 
Can you please let me know where I can read up on Section 94.
Thanks.


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## paddy19 (12 Apr 2014)

See Brendan's post above dated 09-12-2013, 09:57 AM


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