Settling Mortgage

BlackEdelweiss

I am not sure of the exact figure we owe on our mortgage but it is somewhere between €130,000 and €138,000. Our house is now valued at about €125,000 leaving us with a shortfall of say €10,000. We are thinking of emigrating and have a few euros to do this with however if we paid off the €10,000 from this savings we would not have enough to go away.
What is the story with paying off the mortgage if we sold our house, do we have to pay it in full or could we pay the €125,000 and arrange a separate loan to pay off the excess?

Pablo Sanchez

Contact your lender, they may allow you to sell your house seeing as its a relativly minor potential shortfall, they could arrange for the balance to be paid by a personal loan, however i dare say they will ask you to state what other savings you have before they go down the personal loan route.

BlackEdelweiss

Pablo Sanchez wrote: »

Contact your lender, they may allow you to sell your house.

Can they not allow me to sell my house?

fleet

BlackEdelweiss wrote: »

Can they not allow me to sell my house?

I believe he means sell the house AND get a loan for the 10k, both added together to pay off the mortgage. Leaving you 10k in debt, but with your savings.

BlackEdelweiss

I was hoping that is what he meant but you never know with the banks what power they have that the average customer dosent know about. I thought they might not let me sell if the house is in negative equity.

liger

BlackEdelweiss wrote: »

I was hoping that is what he meant but you never know with the banks what power they have that the average customer dosent know about. I thought they might not let me sell if the house is in negative equity.

Spot on, you need to pay off the mortgage in full or get the banks permission to have the Neg equity turned into a personal loan if you cant get a loan from another lender.

Or they can block your sale going thru.

Pablo Sanchez

The Bank holds the deeds to your house, if they dont want you to sell it, they can refuse your solicitor access to them and he cannot prepare contracts for the sale.

Darragho

BlackEdelweiss wrote: »

I am not sure of the exact figure we owe on our mortgage but it is somewhere between €130,000 and €138,000. Our house is now valued at about €125,000 leaving us with a shortfall of say €10,000. We are thinking of emigrating and have a few euros to do this with however if we paid off the €10,000 from this savings we would not have enough to go away.
What is the story with paying off the mortgage if we sold our house, do we have to pay it in full or could we pay the €125,000 and arrange a separate loan to pay off the excess?

Hi,

Would you not consider renting the property out or is that not an option?, perhaps when the economy eventually takes a turn for the better you could then put the house on the market.

BlackEdelweiss

Rent in our estate is about €200 cheaper than our mortgage so that is not really an option. If we stay I would rather sell the house and rent one a few doors up.