Can I sell my investment property in negative equity without affecting my family home?

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Elvis1977

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Hi, I am in a real mess. I became an 'accidental landlord' 7 years ago, but have kept above water by renting it successfully (no profit though). The house is in my name only.

I live in a different property, the marital home, but divorced two years ago. This property is in joint names, I live there with my young daughter.

I have kept up payments on the property I live in, and had done on the other property until I lost my tenant in April. I covered two months on my own but then after speaking to National Debt line, I contacted the mortgage company for that house and they allowed me to reduce my payments and put the house up for sale at a loss (the asking price is £4000 less than what I owe). I had a low offer in yesterday, contacted the mortgage company for permission to accept, but they have pulled the rug from under me! They now say I have to get the house I live in valued, fill in a load of forms and then they will decide whether or not they will allow me to sell the rental!

I am upset they have changed the rules, and I am scared they will force me to sell the house I live in to cover the shortfall or refuse to let me sell the rental at a loss. Can they do either of these things??
 
What the mortgage company is asking for is standard practice - i.e. independent valuation using one of the bank's nominated estate agents, filling in of SFS form, either face to face meeting or telephone interview with mortgage advisor etc. These are simply steps that the bank must take. I did it myself when selling our home on behalf of the bank. They may seem daunting, but they are all manageable. An independent valuation costs approx. 150 Euros.

The 'Agreement to Sell Form', will also likely include a section where you will have to suggest how you intend to repay the shortfall (difference between selling price and what you owe). It's important to not 'over promise' in this section.

It would be impossible for the bank to force you into selling the family home as your ex has equity in the house. Besides, it would cost the bank more than the approx. 4000 shortfall to bring you to court in the first place.
 
epicaricacy said:
What the mortgage company is asking for is standard practice - i.e. independent valuation using one of the bank's nominated estate agents, filling in of SFS form, either face to face meeting or telephone interview with mortgage advisor etc. These are simply steps that the bank must take. I did it myself when selling our home on behalf of the bank. They may seem daunting, but they are all manageable. An independent valuation costs approx. 150 Euros.

The 'Agreement to Sell Form', will also likely include a section where you will have to suggest how you intend to repay the shortfall (difference between selling price and what you owe). It's important to not 'over promise' in this section.

It would be impossible for the bank to force you into selling the family home as your ex has equity in the house. Besides, it would cost the bank more than the approx. 4000 shortfall to bring you to court in the first place.
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Hi thank you for replying. It came as such a shock because it had not been mentioned before, and I don't want to cause more upheaval to my daughter. Also I could potentially lose a cash buyer for the rental because of the delays this will all now cause. I am totally gutted.

You have made me feel better by saying it would be impossible for them to force me to sell the marital home, but if they refuse to let me sell the rental at a shortfall, I would have no option- I cannot afford to keep it going and it needs work that I cannot afford to get done. It feels like an albatross around my neck and I have no idea what to do if they refuse to let me sell it.
 
You appear to be based in the UK OP.

This is an Irish based site and may not be be able to provide a suitable answer to your query.
 
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