# BOI tracker - sale of house in NE. Will they do a deal on the shortfall?



## RainWest (28 Jun 2020)

Hi I have a BOI tracker and wish to sell house. Is there any hope they will do deal as house is in negative equity and would prefer not to have balance to pay once sold.  How would I go about seeking to negotiate with Bank? Or is this wishful thinking on my part!
Thanks


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## Brendan Burgess (29 Jun 2020)

No, there is no chance they will do a deal. 

They probably will not agree to the sale unless you discharge the negative equity at the same time. 

Are you buying another home?  If so, then they may allow you to move the tracker to the new home, but they will increase the margin by 1%.

Brendan


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## Drakon (29 Jun 2020)

RainWest said:


> ...as house is in negative equity ...



When did you buy the house? I thought any house that would have been bought back in the tracker era would we well out of negative equity by now.


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## Drakon (29 Jun 2020)

I’m a bit intrigued by this post. 
The financial crash kicked in proper in 2008, so I assume banks discontinued tracker mortgages around then. That was 12 years ago. 
I bought a house in 2005/2006 (BOI tracker) for €330k. There are two houses currently for sale in the same estate for €300k.
If I sold now, I’d sell “at a loss”, but as I’ve been making repayment for the past 14 years I’m well out of negative equity. 
Unless you’ve missed payments I’m surprised that you could be in negative equity.


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## Brendan Burgess (30 Jun 2020)

Hi Drakon

The vast majority are now in positive equity.

But in some rural areas prices have not recovered as much. 

And if someone had their mortgage restructured as a result of being in arrears, they also could easily be in negative equity.

And, a few, but not this case,  might even have been on interest only. For example, Bank of Scotland gave out interest only mortgages on family homes.

Brendan


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## Jim Stafford (30 Jun 2020)

If you borrowed the money you owe the money.

You have not provided enough financial information for anyone to provide definitive advice.

BOI would forensically examine your financial circumstances to assess your capacity to re-pay any residual debt. In certain cases they will come to a settlement deal if it makes commercial sense for them.

If you are on a tracker rate there should be a possibility of you making a rental profit on the property in order to make principal and interest payments.  One option might be to extend the term to make the bank payments more affordable.

Jim Stafford


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