Trying to sell a property in Negative Equity

M

Ms2011

Registered User
Messages
52
I'll try keep this as short & simple as possible.

We currently own 2 properties, 1 we live in at the moment with a mortgage on it & one we bought for cash & have renovated with the view to moving into it in the next fortnight.
We currently owe €225000 on the mortgage & the property is sale agreed for €205000. The bank are willing to let us sell & pay the balance of €20000 off over 5 years. The problem is we want to have the estate agents & solicitors fees (€4,000 total) taken from the sales price as we don't have the money to pay them out straight ourselves & have no way of borrowing it but the bank are refusing, they want the whole sale price.
I don't understand why they are putting this road block up, we are happy to pay the subsequent balance of €24000 over the 5 years, we have been paying alot more in mortgage payments for the past 8 years & have never even been late on a single payment.
I am close to just surrendering the property to them & letting them do what they want with it (I've no need for it anymore) but I like to do things right which is what I've been trying to do since April but I also feel painted into a corner.

Any advice would be so appriecated.
 
Did you not think of all this before you went sale agreed?

Surrender away if you like. They will get a lot less than €205,000 and then get a judgment against you for the balance and lodge it against your new home.

It seems to me that you are not in a position to sell your property in negative equity, so you should keep it and let it out until you pay off the NE or rising prices eliminate it.

Unfortunately for you, many people who get the agreement of their lender to sell a property in negative equity, become less committed to repaying the shortfall afterwards. So the banks tend to be conservative.

I wonder if they would issue you a mortgage for the full amount on your new home?

Brendan
 
We were told we could put the house up for sale so that's what we did not realising there'd be an issue with fees not being deducted from the sale price.

I don't understand why they are ok with us repaying €20,000 but not €24,000, it doesn't seem to make sense, we have a proven track record.
 
Because to them, it the best part of 25% extra to be paid back on top of what they agreed to. If I were them, and reading above, I see your back against the wall with regard to repayments. You haven't got it and they know it, So who ever is to sanctions the extra repayment, will be putting their head above the parapet, if there is any hiccup in repaying this extra loan, and nobody is willing to to that these days, as its much easier to say no, and not be held accountable, even if it costs the bank more in the long run.

I would be more inclined to borrow the extra €4k from a family member and continue on with your plans.
 
You must log in or register to reply here.
Back
Top