Negative Equity but not in arrears - want to trade up

S

S21408

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Hi I'm just looking for some advice. I bought a two bedroom apartment in 2006. I am in negative equity of approx €100,000. I have never missed a mortgage payment although we struggle every month to get it together.

I have one child and another on the way and we have outgrown the apartment.

I have been in touch with my mortgage company to see what is my best option of getting out of the apartment.

I have looked into negative equity mortgage but this is not an option for us as the LTV on the new house is 125% and with my €100k negative equity would have to borrow nearly €300,000. Also you have to have a deposit of 10% which I don't have.

I requested permission from the bank to sell the property and to set up a payment balance for the balance. This was refused as I was told the balance would be too high. I pushed this a bit further with the bank and was told if I had a confirmed buyer they would look into it and make a decision. However a few estate agents have advised they will not take on the sale with these terms.

The bank then said I had the option to surrender the property to them but it would probably sell for less.

Any suggestions / options for me.

It seems as I am not in arrears the bank will not do /help me
 
S21408 said:
The bank then said I had the option to surrender the property to them but it would probably sell for less.
Click to expand...

This then may be your only option. How much are you currently paying in mortgage, it seems you are even struggling to pay that, so it would seem to me that your are in a situation where bankruptcy/insolvency might be your best option.

How much would renting a suitable place cost for your family?

To get proper advice I too suggest you file out the case study.
 
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