# selling house for less than mortgage owing



## justo (4 Feb 2012)

Hi all, 

Apologies if this has been asked before... 

I have a mortgage of about 250k outstanding on my home; good track record with repayments and never in arrears. 

Do banks entertain the idea of selling the house for say 200k and setting up a personal loan for the balance of 50k over 15 years or so? 

Thanks.


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## PaddyW (4 Feb 2012)

I think the only way you will truly get an answer to this is to ask the bank that question. Otherwise it's just guess work. Best of luck with it. If you have a cheap tracker mortgage it may put you in a better negotiating position though.


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## Oscaresque (4 Feb 2012)

justo said:


> Hi all,
> 
> Apologies if this has been asked before...
> 
> ...



AIB would not let me do this when I asked but I gather banks are dealing with people on a case by case basis so until you ask you won't really know.


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## Bronte (9 Feb 2012)

justo said:


> Do banks entertain the idea of selling the house for say 200k and setting up a personal loan for the balance of 50k over 15 years or so?


 
Ask your bank in writing if you can do so.  What is your reasoning?  From the banks point of view you are paying the mortgage so why would they agree to your request.


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## Shamrock (9 Feb 2012)

I sold our house in December 2010 and there was a shortfall of €8k or so which is much lower than the figure you are talking about. Shortfall was converted into a loan for the remainder of the mortgage term by PTSB. They wouldn't entertain a shorter term but was extremley happy/lucky to sell. Hope this helps?


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## demoivre (9 Feb 2012)

Shamrock said:


> I sold our house in December 2010 and there was a shortfall of €8k or so which is much lower than the figure you are talking about. Shortfall was converted into a loan for the remainder of the mortgage term by PTSB. They wouldn't entertain a shorter term



What, do you have to pay the €8k over a long period of time? Is it a variable rate term loan?


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## Shamrock (10 Feb 2012)

Yes, variable rate loan that matures in 2039. I asked for it to be over a 3 or 5 year period but was told that it has to be for the remainder of mortgage term?


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## demoivre (10 Feb 2012)

Shamrock said:


> Yes, variable rate loan that matures in 2039. I asked for it to be over a 3 or 5 year period but was told that it has to be for the remainder of mortgage term?



Well if it's a variable rate loan I don't see why you can't pay extra amounts each month without penalty to effectively make it a 5 year term loan. €8k over 5 years would be roughly €160 per month.


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## Bronte (10 Feb 2012)

Shamrock said:


> Yes, variable rate loan that matures in 2039. I asked for it to be over a 3 or 5 year period but was told that it has to be for the remainder of mortgage term?


 
This is very strange, why would the bank want it that way, can you give more details? 

Wonder are the bank playing games with mortgage numbers and defaulters and statistics?  This mortgage is performing, on track (!) and not in negative equity.  The fact that there is no actual property I suppose doesn't matter.


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## Shamrock (10 Feb 2012)

Thanks for reply. I will make a call and find out more from PTSB, cheers.


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