# How would you approach a bank for a write down on mortgage debt?



## Ireland.1 (18 Aug 2012)

My husband and I are moving to the UK in October to file for bankruptcy.  Neither of us are relishing the move but don't have an alternative option.  Our bank is non compliant, not interested and seem to have no vision or plans to resolve the problem even though we have presented them with numerous resolutions. 

We will have to give up our jobs to go to the UK were we have not been successful so far in obtaining employment.  We believe we are going from the frying pan into the fire.

As one last move we are proposing to contact the bank directly asking them for a mortgage write down.  We are not running from our responsibilities just basically asking them to rearrange our loan.  We propose getting the property valued (we will pay for this) and writing the mortgage down to the current value.  The negative equity could be put into a personal loan which we will service on a monthly basis.

Deep down we know they will refuse our proposal but all we can do is try once more before we leave this island for once and for all.

Would somebody be kind enough to offer us some pointers on how to approach the bank with such a proposal. 

Thanks,

Ireland.1


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## rupert7 (18 Aug 2012)

Ireland.1 said:


> . We propose getting the property valued (we will pay for this) and writing the mortgage down to the current value. The negative equity could be put into a personal loan which we will service on a monthly basis.


 
You haven't explained what you propose to do very clearly. 

Do you mean you will sell the house and pay remainder of equity as a personal loan? 
otherwise you will be in a worse situation than you are now as the personal loan interest rate will be higher than the mortgage rate.


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## Ireland.1 (18 Aug 2012)

The property is 50% negative equity.  We propose to stay in the house  and pay 50% of the mortgage and put the remaining 50% (EUR100,000) into  an unsecured loan over twenty years.

We have tried to sell the  property and got a genuine offer from a mortgage approved buyer but the  bank would not allow us to sell as the offer was perceived to be too  low.  Nobody is going to pay what we originally paid so when we up  sticks to the UK they will have no option but to accept a 50% reduction  to sell the property.


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## orka (19 Aug 2012)

Ireland.1 said:


> The property is 50% negative equity. We propose to stay in the house and pay 50% of the mortgage and put the remaining 50% (EUR100,000) into an unsecured loan over twenty years.


Unless there is an important part of your explanation missing, this makes no sense. It appears that your mortgage is for 200K on a house worth 100K - so you want to pay a mortgage on the 100K value and pay the other 100K off as a personal loan over 20 years? How does that improve your situation? You still owe 200K but it's split into 100K at mortgage rates and 100K at worse personal loan rates.


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## shigllgetcha (29 Aug 2012)

Do you want to split your mortgage and default on the personal loan?


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## Kerrigan (29 Aug 2012)

You need to stop beating around the bush and simply write to the bank asking them to write the NE off or part write it off.  Banks need to get real.


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