Negative Equity On Investment Property

T

tidyweb

Registered User
Messages
5
I am selling my investment property for 15K less than the redemption value.

I currently have no income and cant get a loan to cover the shortfall.

Any suggestions on what I can do.
 
What percentage of the overall outstanding loan is the €15K shortfall? Perhaps the lender will negotiate this down or away?
 
You mean that you want to sell. You won't be able to sell if the lender doesn't agree. Clubman is absolutely right. You MUST talk now to the lender.
 
Can a lender veto the sale of a mortgaged (PPR or investment) property? I wasn't aware of that but I suppose given their interest in it it might not be that surprising...
 
Well they can refuse to release the deeds for less than the amount owed so that is effectively the same as not allowing it.
 
Of course - forgot that they hold onto the deeds while the property is used as security for a loan.
 
Having said that it would appear that the OP has agreed a sale on the property. In the current climate it appears that the 15K shortfall is not a bad result. No harm in approaching the Financial Institution and looking for a deal with them on this basis. I.e. If you could come up with a further 7/8K in cash they are likely to accept this.
 
Have you received permission from the bank to sell at below redemption value?
 
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