Can I put a house in negative equity up for sale?

Ireland.1

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Just wondering can I put my primary (in deep negative equity) up for sale even though I have been advised by agent that it will not fetch an amount that will clear the mortgage?

I obviously will not accept an offer without putting it too the bank for clearance.

Will this cause a problem with the bank or does it show some initiative on our part that we are actively looking to sell because we cannot afford to keep the mortgage.
 
You will need to get permission from the banks as it will depend on the shortfall you are left with after selling. Ultimately they have final say as they will not release the deeds on the property until the shortfall is cleared or they reach an agreement with you on how to pay it off. I would get it in writing from the bank that they consent to you to sell before you put it on the market.
 
You don't need their consent to put it up for sale. But you will need their consent to actually sell it if they are to accept a price that is less than the NE. I suggest you write a letter to your bank informing them that you are putting it up for sale, that the EA reckons it's worth X, which will be Y short of the mortgage, that you will inform them when you get an offer and await their instructions. Meanwhile put it up for sale, but inform the EA you will need your banks permission. The EA's know the score. These sales are currently taking up a lot of EA's wasted time while the banks dither on how to make a decision.
 
We were told by our lender that we can sell even if NE applies but they won't put this in writing.
He said that the balance still owed would be applicable to current tracker rate and remaining term-over 20 yrs in our case. Again, they won't give it in writing or at least not until an offer is made, then they will ask us to sign that the o/s bal is x and we agree that it will be paid at y interest rate over z term.
 
I would get something in writing when an offer is made so that they cannot change their mind at an advanced stage of the sale.
Bronte yes you are right on the above point I should have explained my point better.
 
We were told by our lender that we can sell even if NE applies but they won't put this in writing.
He said that the balance still owed would be applicable to current tracker rate and remaining term-over 20 yrs in our case. Again, they won't give it in writing or at least not until an offer is made, then they will ask us to sign that the o/s bal is x and we agree that it will be paid at y interest rate over z term.

Hi ellenb, was this a straightforward discussion with the bank and can you advise what bank this is?
 
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