Sale agreed but how to put forward a proposal to the bank re shortfall

Hi,

We have accepted an offer for our house and there is a shortfall of circa 40k. We approached the bank at the time of going sale agreed and gave them figures etc and were told that they would contact us regarding dealing with the shortfall balance.

Roll on 8 weeks and our buyers solicitor is looking for confirmation from the bank that the sale is ok to close. My solicitor has received a request from the bank provide a few details and have also asked us to put forward a proposal on how the 40k will be repaid.

How do I prepare such documentation and also what fo I need to include. The bank have asked us to send in a proposal in writing and they will take it from there. Please help!

What is your proposal? That you want to pay it over 5/10 years, etc.?

We would like to pay it off as soon as possible but there is only 1 income coming in. Solicitor had mentioned offering a partial payment in full and final settlement but this would have to be borrowed from family.

Well there you are. Bank is in a position where it must be realistic on this. Write first to then explaining your poor financial position and that you can obtain X amount from your parents if they agree to take this in full settlement. Don't offer an alternaive until they respond!

Thanks for that 44brendan. I will initially send a letter detailing our financial situation.

You need to paint your financial situation as badly as possible. I suggest you offer to pay the 40K off over the current mortgage term and interest rate.

Also don't initially offer the partial payment, keep that out for now and see what they suggest.

Hi Bronte, I have sent off a letter this morning outlining our poor financial situation. I have offered the lender a partial payment as this is genuinely all we can afford after borrowing from family.

I have also mentioned in the letter that arrears are now building and as the bank have declined us for a Trade Down mortgage and have refused to offer any more interest only periods, we can see a repossession down the line if we lose this buyer.

Since going Sale Agreed, the bank have stopped sending letters and phone calls have also stopped. My partner has just started a job based in a 6 month contract and to be honest, his salary only leaves us slightly better off than being on Social Welfare.