# Bank Loan rejected now negative equity greater by 60K



## Akk (21 May 2010)

Hi,

1 year ago I went to my bank to get a loan in order for me to be able to sell my house as I had an offer of 450K but my mortgage was 505K. the bank turned me down even though I had a high paid job and I was willling to repay the debt over 5 years.

The house sale fell through and now the neg equity is over 100K.

Do I have any comeback with the bank. My mortgage is on interest only and has been for 3 years...I have recently split from my partner and the house is rented but it does not cover the mortgage and my fear is when interest rates rise I am really in a bad way especially as I have a tracker mortgage.

Any advice would help...


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## Brendan Burgess (21 May 2010)

Hi Akk

No, from what you say, you don't have any comeback. 

You asked the bank to allow you to sell the house at a deficit and  convert the deficit into a personal loan? The bank would not be obliged  to do this, however, it might have been in their best interest to do it.  

You could try to sell the house again and go into the bank again and  offer again to sign up for a loan of €50k and ask them to write off the  balance. I doubt if they will go for it but you could do it.


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## Nationaldude (21 May 2010)

As an aside to this topic, it the bank DID agree to allow the OP to sell the house and also agreed to write off part of the negative equity, would this "write off" have an impact on credit rating?


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## Akk (21 May 2010)

Thanks

It is just so frustrating and so annoying that they would not give me 50K and now I am stuck for another 60K....Anyway, staying positive is the best thinkg I can do now as I know the banks will not assist


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## Howitzer (21 May 2010)

Brendan Burgess said:


> Hi Akk
> 
> No, from what you say, you don't have any comeback.
> 
> ...


+1.

I just cannot understand the paralysis that must exist in the Bank's decision making here. It makes absolutely no sense. Is anyone making decisions on a case by case basis or are they just parrotting answers from a handbook?


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