Selling a neg eq property

E

EmDilemma

Registered User
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17
Hi,

We are selling a property that is in negative equity.

There is about 14,000 euro difference between what we are getting and what we owe the bank.

Much better than last year incidentally when a valuation put us in about 70,000 neg eq......

(Valuation is a total mirage, just on that issue an identical apartment went with same view/floor size etc went on the market the month before us and got 42,000 less than ours - the only difference was ours looked nice aesthetically and the other one didn't!!).

Anyway, my question is, the solicitor has told us we will pay the difference into their client account.

But say we pay that 14,000 over to the solicitor next week, but we are continuing to pay the mortgage as normal - won't we end up overpaying the bank a little?

Wouldn't it be better to pay the bank the 14,000 and reduce our repayments accordingly over the next 4 weeks until we finish the transaction.

The solicitor just says to transfer it to them.

I am not mathematically minded, in the slightest, so perhaps I am totally misfiring here. But I have niggle that by paying the 14,000 now to the solicitor rather than to the bank will result in us paying too much to the bank, in interest at least.

Could someone help me see the situation correctly/clearly.

Thank you!
 
The Bank will only take what is owed, they will provide the final figure to your solicitor, if you like you can transfer online for same day value the actual shortfall the day before the closing when the apportionment statement should be available from your solicitor, that will allay any concerns you may have as it will list all the transaction amounts in the closing statement.
 
Ok thanks for getting back to me on that. I'll do that.

Incidentally we also received a letter from bank saying our mortgage was being looked at in terms of overcharging.

We didn't get a tracker (feels like we were the only ones taht didn't back then - 2006) but perhaps when we came off the original fixed term they should have offered us a better deal. I bloody hope so as we were shafted with the interest payments. Totally shafted.
 
I would keep it very simple. Pay the money to the solicitor if it's going to close shortly. You won't lose out.

If you transfer it and it goes missing, it will delay the sale.

If the sale is some weeks away, by all means pay it off the balance today so that the proceeds exceed the mortgage.
 
Are you buying another house with a mortgage?

If so you would be able to transfer your tracker to it, if you get a tracker restored.

If you have paid off your mortgage and moved to a different lender, you are unlikely to get compensation for future losses.

Brendan
 
Thanks Brendan.

No we never had a tracker. I'm hoping we received the letter because we didn't get offered the best fixed rate by bank. I'm not sure exactly though.

We are going through mortgage approval at moment with a broker
 
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