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Selling House - Negative Equity

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  • 19-11-2015 4:11pm
    #1
    WalterR
    Registered Users Posts: 4 ✭


    Hi

    I received a surprise offer on my house recently and I am considering accepting. The expected price will still not clear my mortgage. I was just wondering what is standard procedure here with the banks regarding how my outstanding balance is handled.

    For ex, can terms be re-negotiated, will I maintain my variable mortgage rate etc. I presume they wont expect monthly payments inline with what I'm paying now and so on?

    Thanks
    W
    Tagged:


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    #2
    Senecio
    Closed Accounts Posts: 971 ✭✭✭Senecio


    You will be required to clear the remaining mortgage. How you do that is up to you (savings, personal loan etc...).


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    #3
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    IF you can,t pay the difference between the loan and sale price ,
    you ll have to try and get a loan to cover the balance .
    IF you can,t get a loan the bank will block the sale ,
    they have the deeds .
    You need permission to sell the house if the offer does, not cover the
    amount left on the loan.
    Usually the first 10 years of say a 100k,
    loan ,you ,ll still owe 100k,
    after that the loan capital is reduced by a certain amount each month .
    You have to tell the bank ,
    i got offered , x amount ,
    Can i borrow x amount to cover the balance .
    Have you any savings you can draw upon .
    Are you on a good wage .is the negative equity ,large ,
    40k ,70k ?
    Do not presume the bank will allow the sale to proceed .
    my friend has a loan 140k,
    her house is worth 65k,
    there,s no way she can afford to sell up before 2040 .
    She works full time .
    She has no hope of paying 80k negative equity from her wage .


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    #4
    LilyShame
    Registered Users Posts: 144 ✭✭LilyShame


    WalterR wrote: »
    Hi

    I received a surprise offer on my house recently and I am considering accepting. The expected price will still not clear my mortgage. I was just wondering what is standard procedure here with the banks regarding how my outstanding balance is handled.

    For ex, can terms be re-negotiated, will I maintain my variable mortgage rate etc. I presume they wont expect monthly payments inline with what I'm paying now and so on?

    Thanks
    W

    Hi op,
    In the same position as you. Take a look on the money advice site, ask about money.com. examples there of a broad range of cases, from ppl fleeing the country, ppl paying the shortfall with unsecured loan, ppl not selling and renting and ppl sourcing a negotiator to deal with bank and write off some of the debt. This last option seems to apply where the debt is so massive and the mortgage hder just can't reasonably pay it in their foreseeable lifetime. Mabs and the Irish mortgage holder assoc both provide support, as do the uk version of mabs. Good luck.


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