We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
buying when seller is in negative equity
lethal0r
Posts: 408 Forumite
is it a done thing to suggest the seller overpays their mortgage by a few grand so the sale can happen?
chances are my offer could be about 3 grand less than the equity they have in it.
or is there another way to go about it? obviously excluding me paying higher
chances are my offer could be about 3 grand less than the equity they have in it.
or is there another way to go about it? obviously excluding me paying higher
0
Comments
-
If they sell for less than they owe the seller will have to pay the shortfall to their solicitor before you complete anyway.
It is worth verifying that they can afford to do this before you fork out on surveys etc.
CC debt at 8/7/13 - £12,186.17
Barclaycard £11,027.58
Halifax £1,158.59
5 year plan to live unsecured debt free and move home0 -
oh is that how its done, thanks. much simpler than paying some off the mortgage first!0
-
Not only will they need to clear the mortgage, they will have to pay any mortgage redemption fees, solicitors fees and estate agents fees.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
-
Sadly there are people out there who don't realise that they have to pay off the mortgage etc, or don't realise how much they owe, and go gaily into a sale, which then cannot proceed, but this is only found out after the buyer has spent money on legal fees, mortgage application fees etc.
So OP is quite wise to get the point checked before h=going any further.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
oh is that how its done, thanks. much simpler than paying some off the mortgage first!
Yep - I sold in NE, so when I transferred my solicitor the money for their bill a few days before redemption, I also had to transfer the NE amount for them to redeem the mortgage.
On completion day, their solicitor will get sale money from you, combine it with the extra from them, and use it to redeem the mortgage.
Definitely worth checking they either have the means to pay it off, or have agreed with their lender that they can convert the debt to an unsecured loan, otherwise they could pull out of the sale when they realise.0 -
is my solicitor the one who checks they can proceed? is it possible to get recompense if the seller unwittingly cannot proceed?
thanks for all the replies.0 -
Unfortunately, to my knowledge all you can do is ask the seller/EA outright, and take their word on the answer.
I don't think there will be any way to claim recompense - sellers can pull out for no reason at all right up to exchange of contracts.
0 -
And buyers are not responsible for paying off the negative equity debts of sellers.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.3K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards