Negative equity

hmot24

Hi there,

Is it possible to sell your house whilst in negative equity?

The situation is that we really want to move to another area of the country but we have a shortfall of about 10K after solicitor & agent fees + a deposit on a new house and the money we are losing on this house. Are there any companies or schemes people can recomend?

Please HELP!!!

Thanks!!

Caz3121

you can sell but you will need to clear the mortgage on the place, could you use the deposit for the new place and rent for a while, otherwise it would be a loan which may impact your mortgage for the new place
good luck

hmot24

hiya, we dont have a deposit for another place, that was part of the prob in the 10K. Just wish there was some sort of way of selling for the amount we owe or a way of carrying over the money onto another house.

thanks anyway!

G_M

Your buyer will only buy your house if you clear the mortgage on it. Mortgage provider on the new place is unlikely these days to give you 'cash' to use for this (the days of 110% mortgages are gone!) so you'd have to find the money yourselves I'm afraid.

hmot24

Thanks for getting back to me!

So really i need a miracle, i'm on mat leave as well at the mo so the prospect of saving any cash is nil.

Anyone any other ideas?

sarah_elton

Unfortunately the other posters are correct. Before you sell, you will need to have the money for:

The difference between what you get for the house and what you owe the bank (needed before completion)
Solicitors fees for buying and selling
At least 10% deposit for new house
Other costs - e.g. mortgage application fee for new house

Is it possible to save up or borrow enough money to sell your house (so you need the negative equity amount and the selling costs), and then rent somewhere else? You won't be able to buy without a deposit, and if you're moving to a new area it can be better to rent first to make sure you like it, so you don't end up in the same situation again...

How much could you rent your house out for? Would the rent cover the mortgage? Could you rent it out, and then move somewhere else and rent there?

Fly_Baby

sarah_elton wrote: »

Is it possible to save up or borrow enough money to sell your house (so you need the negative equity amount and the selling costs), and then rent somewhere else?

Without trying to undermine your advice, I just couldn't help thinking how sad it sounds - when one needs to borrow money to SELL a house...

Dinah93

My advice would be for your OH to get a second job, and you to ebay everything that isn't nailed down, do online surveys, mystery shopping etc, alongside cutting your current spending for a year to try to make this 10k gap, so you can move house then.

hmot24

Hi, yes i am ebaying things at the mo!

How do you do online surveys? can you recomend any? There seem to be alot of scams about so if you know of recomendation that would help.

Thanks!

Dinah93

Check out the list here:

http://www.moneysavingexpert.com/protect/make-money-surveys

but also, if you go through these forums to the 'up your income' board:

http://forums.moneysavingexpert.com/forumdisplay.html?f=145

you'll find loads and loads of ideas for ways to bring in some extra pennies.

Best of luck, x

penguine

There's an article in today's Guardian that might have some useful information for you.

www.guardian.co.uk/money/2009/jun/23/negative-equity-mortgages

Who is your mortgage with? Your lender may let you carry the negative equity when you purchase your next property.

Lloyds TSB (including C&G) will allow borrowers in negative equity to carry their mortgage over to their next home, but not to extend the debt.