help with mortgage in negative equity and sale on house

Mrs_Taylor_3

Hi, i'm in a bit of a pickle here and wonder if anyone can offer me some advice. My sister has recently split from her husband and they have mortgages on two properties, they have been having financial difficulties (too much debt) and have put both houses on the market. They've received an offer on one house and the Mortgage Lender has said that they need their permission to accept it and that they want another independent valuation despite the fact that it will regain them most of the outstanding figure on that property, anyone got any suggestions? Neither my sister or her husband are in a position to afford to pay the monthly figure at the moment and she has an appointment mid May to speak with a debt advisor for the local authority, in the meantime the mortgage lender is threatening to begin reposession proceedings!! Any help with this subject would be greatly appreciated.

maninthestreet

The mortgage lender will not remove their charge on a property if your sister and husband try to sell at a price lower than the outstanding mortgage debt, and have no other funds available to pay the difference - you have to pay off 100% of the mortgage when the property is sold.

theartfullodger

Encourage your sister to go see CaB
see..
http://www.citizensadvice.org.uk/
and also to speak, calmly and gently & without shouting, to the lender to see if they are prepared to be at all flexible. Asking nicely can at worst get the answer "no".
Cheers!

Lodger