Negative equity on selling property

sporegan

Hello all,

We have our property on the market and recently we have had an offer made on it. However, we only bought the house three years ago and the offer is less than the value left on the mortgage. If we accept the offer we are in negative equity of at least 15,000 euro. We have a small amount of savings but only enough to cover estate agents and solicitors fees if the sale progresses. We are very keen to sell up as our 1 year old baby receives regular treatment at Crumlin childrens hospital and we live a long long way away and want to be nearer. Also, we have had wages cut at work recently and making mortgage repayments on the house is getting tighter, we want to sell up and move on.
My query is, does anybody have any experience in selling a house with some negative equity? Do the banks seem more willing in these times to scrap a small amount of negative equity? In our case they would need to scrap around 15,000 of debt but would regain well over 300,000 back if the house sells? If the bank laughs at this proposal then that leaves us probably with the only alternative of getting a bank loan to cover the deficit...........

Any advice would be much appreciated. Thanks

MagicMarker

You need to speak to your bank, they may not allow you to sell the house and even if they do you're still liable for the negative eq.

killers1

I'd suggest talking to your bank and explaining the reasons why you need to move. You will need their approval to sell the property for less than the loan outstanding. Do you plan to purchase a cheaper property or are you going to rent elsewhere? If you are buying a cheaper property the bank may allow you to transfer the NE to the new property. If you are planning on renting they may allow you to retain an unsecured personal loan for the balance remaining after the property is sold. Given the special circumstances with your child needing treatment I would be surprised if they didn't look favourably on your request. I hope the treatment goes well, best of luck.

badge1123

Myself and my girlfriend moved from living in our parents in dublin to buying a house in arklow nearly three years ago.She now says she hates it down here and wants to move back up closer to family and friends in dublin.I was just wondering where we stand with the banks (aib) in regards the negative equity now on our house.We borrowed €266k reckon house is worth about €215k-€220k now.

bren2002

badge1123 wrote: »

Myself and my girlfriend moved from living in our parents in dublin to buying a house in arklow nearly three years ago.She now says she hates it down here and wants to move back up closer to family and friends in dublin.I was just wondering where we stand with the banks (aib) in regards the negative equity now on our house.We borrowed €266k reckon house is worth about €215k-€220k now.

How sure are you on those figures? Given recent reports of a 68% drop in prices since 2007, your estimate of the price attainable on your house looks low.

Accepting that you've not published how much you actually paid for your house, just what you borrowed.

bren2002

sporegan wrote: »

Hello all,

We have our property on the market and recently we have had an offer made on it. However, we only bought the house three years ago and the offer is less than the value left on the mortgage. If we accept the offer we are in negative equity of at least 15,000 euro. We have a small amount of savings but only enough to cover estate agents and solicitors fees if the sale progresses. We are very keen to sell up as our 1 year old baby receives regular treatment at Crumlin childrens hospital and we live a long long way away and want to be nearer. Also, we have had wages cut at work recently and making mortgage repayments on the house is getting tighter, we want to sell up and move on.
My query is, does anybody have any experience in selling a house with some negative equity? Do the banks seem more willing in these times to scrap a small amount of negative equity? In our case they would need to scrap around 15,000 of debt but would regain well over 300,000 back if the house sells? If the bank laughs at this proposal then that leaves us probably with the only alternative of getting a bank loan to cover the deficit...........

Any advice would be much appreciated. Thanks

The bank are the only people who can answer this. Professional help might be a possibility to help secure a deal.

15k isn't a huge sum, can you sell a car? Cash in a pension? Borrow from siblings / credit union? Not ideal, but options all the same.

Sorry to hear you'd child is ill.