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Sell house in negative equity

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  • 14-02-2016 10:42pm
    #1
    abbey2000
    Registered Users Posts: 138 ✭✭


    Hi there. My situation is this... I own a house in the west and the mortgage is in my name, my partner also owns a house but in Sligo with a mortgage in her name.

    We want to live in her house in Sligo and sell my house...but I'm in negative equity, probably somewhere in the region of €50k. I'm not in arrears, never missed a payment and have no problem paying the mortgage.

    If I could sell would the bank let me pay off the negative equity, as a loan? I'd have no problem paying it off. I'd rather sell and not rent, renting would be to much hassle . Our future lies in the Sligo house and is where we want to settle. My other half would continue paying that mortgage.

    Just wondered if the bank would consider this, or have I any other options at all?


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    #2
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,507 Mod ✭✭✭✭johnnyskeleton


    Yes, they might. Ask them.


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    #3
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    It'd be long and many a day before I, if I were an underwriter, allowed a secured loan to be converted into an unsecured one. However as above, you need to ask.

    If you're serious about living with your partner you might consider marriage and using equity from the Sligo house to pay off the shortfall on the other property.


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    #4
    abbey2000
    Registered Users Posts: 138 ✭✭abbey2000


    We are already civil partner shipped. Not sure if there's any equity in the other house...


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    #5
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    abbey2000 wrote: »
    We are already civil partner shipped. Not sure if there's any equity in the other house...

    Bang on, obviously don't do anything without speaking to a financial advisor but you might be able to offer the other property as security.

    Out of interest, any reason you wouldn't rent it? I do understand you might simply just not want the hassle, but it's an upward trending market it the moment.


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    #6
    Bigus
    Registered Users Posts: 4,942 ✭✭✭Bigus


    MarkAnthony wrote: »
    Bang on, obviously don't do anything without speaking to a financial advisor but you might be able to offer the other property as security.

    Out of interest, any reason you wouldn't rent it? I do understand you might simply just not want the hassle, but it's an upward trending market it the moment.

    Don't offer the other house as security, it's not yours to offer plus it's not your partners debt.

    Talk to your bank about selling , but I'd be inclined to keep your real plans close to your chest, to encourage them to offer a good deal, ie if you were emigrating they might be quicker to agree to a sale , and react to a good offer on the balance .
    If things keep going the way they are here your 50k shortfall maybe well reduce by summer.


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    #7
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Bigus wrote: »
    Don't offer the other house as security, it's not yours to offer plus it's not your partners debt.

    Talk to your bank about selling , but I'd be inclined to keep your real plans close to your chest, to encourage them to offer a good deal, ie if you were emigrating they might be quicker to agree to a sale , and react to a good offer on the balance .
    If things keep going the way they are here your 50k shortfall maybe well reduce by summer.

    Obviously dont offer it if you don't have to, but as civil partners they are entitled to act as one in regards to property.

    As for trying to play hardball with the banks, it makes a good pub story but few get very far with it.


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    #8
    Bigus
    Registered Users Posts: 4,942 ✭✭✭Bigus


    MarkAnthony wrote: »
    Obviously dont offer it if you don't have to, but as civil partners they are entitled to act as one in regards to property.

    As for trying to play hardball with the banks, it makes a good pub story but few get very far with it.

    Yes the op is prepared to pay , but by negotiating properly they should avoid giving a charge over the second house or the bank point blank refusing to allow a sale to go ahead in negative equity.


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    #9
    abbey2000
    Registered Users Posts: 138 ✭✭abbey2000


    MarkAnthony wrote: »
    Bang on, obviously don't do anything without speaking to a financial advisor but you might be able to offer the other property as security.

    Out of interest, any reason you wouldn't rent it? I do understand you might simply just not want the hassle, but it's an upward trending market it the moment.

    I know what your saying about rent, but it really is just hassle. Unless I gave it to agency to deal with, then maybe. We just don't need 2 houses anymore so would rather get rid of one. Might just approach bank and see what they have to say.


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