# Can I insist on selling a house in negative equity, even if the bank refuses?



## wexbloke

hi,

some questions:

How would you go about selling your houses if they are in negative equity? 
would you find potential buyers first and point them to receiver?

If houses (one home two rental) are in both spouses names would wife have to go to UK also?


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## Steve Thatcher

wexbloke said:


> hi,
> 
> some questions:
> 
> How would you go about selling your houses if they are in negative equity?
> would you find potential buyers first and point them to receiver?
> 
> If houses (one home two rental) are in both spouses names would wife have to go to UK also?


 
It is actually possible to force the lender to allow you to sell. We have a great way to do this. Sorry to be secrative but there has to be some trade secrets.

As for both parties going bankrupt, it depends really who is going to be the more actively economic member of the household later. 

There will be a solution for mortgage debt etc but as we've pointed out on here, it will take time and will be lender dependant.

If H has a great chance of good earnings in the future and can start again by going bankrupt, then ( and I have lots of clients in this position) H goes bankrupt and W stays in Ireland and attempts to keep family home. ( again this is possible) and later she can avail perhaps next year of a DSA or a PIA

Steve
Www.helpwithdebtuk.com and debtoptions.ie


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## Bronte

Steve Thatcher said:


> It is actually possible to force the lender to allow you to sell. We have a great way to do this. Sorry to be secrative but there has to be some trade secrets.


 
Does anyone else know what Steve is referring to? I am intrigued and wonder is it underhand. I'll have to put my thinking hat on to try and figure this out.  

Why does it have to be secrative Steve? 

Is it legal I wonder.


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## Brendan Burgess

Hi Bronte

Anthony Joyce, Steve Thatcher's partner, told me that he does this but again would not tell me how. 

I asked two solicitors about this, who said it was not possible.

But a third told me that he has successfully done it. They take a very strong line with the bank and threaten High Court action if the bank does not agree. The bank always blinks first.  Not sure how much the whole process costs though.


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## Bronte

So some solicitors think it's impossible but it is apparently possible if you threaten High Court proceedings, but on what grounds? 

Is it linked to the situation where people were not allowed to sell at a certain price and then prices dropped further so people were able to prove that it was the banks fault they didn't get a higher price?

In what way does one take a strong line with the bank?


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## demoivre

So banks in general won't allow people in negative equity to sell ? If someone in negative equity stops paying their mortgage will the bank not repossess and sell?


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## 44brendan

Not generally true. However, there is some credence to this, in that some of the govmt owned Banks are currently underprovided on their mortgage book. Sale of a property in negative equity would crystalise a loss that has not been provided for. Unfortunately, this can cause problems for some debtors who genuinely want to sell their properties and is not good banking practise. However, as in the example above, a good solicitor could take the Bank to task & I can see why a Bank would cave in against a threatened legal case.


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## Bronte

demoivre said:


> So banks in general won't allow people in negative equity to sell ? If someone in negative equity stops paying their mortgage will the bank not repossess and sell?


 
They will eventually. But it takes time, also they are very slow to do it and they don't want to repossess too many at any one time, they prefer to drip feed the market (have a look at Allsops auctions for some of these). 

Don't forget that there is a cost to the bank to repossessing, court costs, legal costs, maintaining the property, trying to get rent. In a lot of one off houses it's easier to just let the borrower stay in the house and maintain it rather than repossess and board it up, further lowering prices in that estate, and then the house gets vandalised etc. Banks are not stupid. So it's a slow game.

There are also quite a few properties that are unsaleable, or would only realize a miserly amount.  Apartments in Bally-go- backwards for example which should never have been built.


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## Magpie

Bronte said:


> There are also quite a few properties that are unsaleable, or would only realize a miserly amount.  Apartments in Bally-go- backwards for example which should never have been built.



What happens in these cases? Nobody seems to know. What will a bank do if your property is effectively worthless? What can the homeowner do?


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## manninp2

I never really understood the significance of forcing the bank to sell if in negative equity.

Surely once you are declared bankrupt you can hand the keys to the OR and that's it. It's the banks house now.


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## Steve Thatcher

manninp2 said:


> I never really understood the significance of forcing the bank to sell if in negative equity.
> 
> Surely once you are declared bankrupt you can hand the keys to the OR and that's it. It's the banks house now.



That is very true. You can also simply hand the keys back to the property when you move. The bank then sells as mortgagee in possession. The shortfall will be written off in the bankruptcy 

Steve Thatcher
Www.debtoptions.ie


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