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Selling house at a loss

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  • 27-09-2014 8:03am
    #1
    Aber2012
    Registered Users Posts: 44 ✭


    Hi there,
    I was wondering if anyone has had any experience of selling a house and then looking for a loan for the negative equity. Basically Ive moved up the country and have no ties with this house I'm trying to sell, but not looking to buy elsewhere at the minute, I reckon I would get €120k for it and have a mortgage of about €145 left on it. Are the bank likely to let me sell it? And potentially give a personal loan to cover the deficit or is this a no-go area at the moment? Thanks


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    You need to sit down and discuss this with your lender in advance.
    As a general rule- unless you are moving to another property, on which you are taking out a mortgage with the current lender- they don't tend to facilitate these type transactions.

    Once you sell the property- the 25k (or whatever) that is outstanding, becomes an unsecured loan on the part of the lender.

    Best thing you can do is go in, sit down- and discuss it with the mortgage lender in the branch in which you have the mortgage.


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    #3
    Mrs OBumble
    Registered Users Posts: 25,966 ✭✭✭✭Mrs OBumble


    OP - do you seriously expect that the bank will let you have an unsecured personal loan of 145k? Really???


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    #4
    Aber2012
    Registered Users Posts: 44 ✭Aber2012


    Mrs OBumble wrote: »
    OP - do you seriously expect that the bank will let you have an unsecured personal loan of 145k? Really???

    No- if you re-read it- that's the outstanding mortgage on it? If I sold the house There would be a deficit of ~€25k


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    #5
    Aber2012
    Registered Users Posts: 44 ✭Aber2012


    I know all the above- just want to know if someone has been in a similar situation and how it worked out?


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    #6
    TheDriver
    Registered Users Posts: 12,514 ✭✭✭✭TheDriver


    Plus people may not want to deal with you if its negative equity unless you have letter of consent in place


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    #7
    mr_seer
    Registered Users Posts: 130 ✭✭mr_seer


    I am in the process of doing something similar. The bank has agreed to keep the residual debt on the same term and interest rate as the current mortgage. If you think about it, it is a quite logical decision from the bank's perspective. Their security was underwater anyway. At least they get a guaranteed capital payment back for c. 90% of the mortgage right now. They can then put this capital to use by lending it elsewhere. It is also significantly less forbearance than they are giving to the vast bulk of their basket case residential loan books


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    #8
    Mrs OBumble
    Registered Users Posts: 25,966 ✭✭✭✭Mrs OBumble


    Aber2012 wrote: »
    No- if you re-read it- that's the outstanding mortgage on it? If I sold the house There would be a deficit of ~€25k

    Ahh ... not how I read it the first time.

    That proposal makes more sense. I don't know what level of unsecured personal loans banks here give, but it doesn't sound unreasonable to me at that level.


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