Selling a house in negative equity. Advice NEEDED!

Shell_S

Im going to ring the mortgage company tomorrow and see what they say about us being able to rent it out or not.

timmyt

Shell_S wrote: »

I need some advice on a house of mine that is due to go on the market no agent will sell it as how will they get paid, there is not enough to pay the mortgage. No lawyer will work for you either. but will no doubt sell for less then whats left on the mortgage.

Me and my husband are currently going through a divorce at the moment and he is living in the marital home whlist I am living elsewhere.

We both just want rid of the house. hand back the keys to the lender, but they will sell it for less than your own agent would and they will come after you for sure for any balance It has been valued and it looks like it will sell for less then what we owe on the mortgage leaving us with a short fall.

What will the mortgage company do? they want to be paid. But some do voluntarily write off a chunk if you go to them and tell them the problem. They agree a fiogure to settle in full and final settlement. Write and say you are in negative equity and that you don't want the worry, and what figure would they accept to redeem the mortgage. Will they want us to pay the full amount whats still owed to them in one lump sum or will they let us carry on and pay so much a month? or you work out after repayment of legal fees and agents fees (though both agent and lawyer may want paying upfront) what would be left to go towards the mortgage and would they accept that in full settlement. They may say they will accept it to redeeem the mortgage but they will want you to then make unsecured arrangements to repay the negative equity

There is no way whatever the shortfall may be that we will be able to afford to pay whatevers owed on the mortgage so what will happen??

I dont know what to do Im in desperate need of help as it is really worrying me!

Thanks a lot.

please see the above comments in red

ninky_2

silvercar wrote: »

Could your ex take a lodger? Or could you let the property?

to rent the property the lender is likely to ask them to switch to a btl product and they don't have the equity for that.

SouthCoast

But some do voluntarily write off a chunk if you go to them and tell them the problem.

Are you able to give examples of which mortgage lenders are prepared to do this?
Reading this site indicates a very strong demand for this service.

GDB2222

I'm a bit pessimistic perhaps, but I notice that nobody has suggested going bankrupt. The advantage is that you get rid of the mortgage debt and the credit card debts at the same time, and it costs you nothing! Also, because you've got nothing, it makes any divorce negotiations much, much easier. So, you get rid of the ex at the same time, too. Any children in the marriage?

The main consequence of bankruptcy is that you can't get credit, which is the position you are in now, so no change there. Also, a few jobs are closed to you, eg being a solicitor.

Also, if you are a high earner, you will have to give some of your pay to the TIB, but I don't the impression that you do earn a fortune, as otherwise the £9k debt would not be such a big deal.

Sorry to appear heartless, but it's worth at least considering bankruptcy.

GDB2222

By the way, keeping the house and letting it out might be a good plan. If things go swimmingly, you'll dig yourself out of the hole you are in. Whilst if things get worse, well there's always bankruptcy ...

timmyt

GDB2222 wrote: »

I'm a bit pessimistic perhaps, but I notice that nobody has suggested going bankrupt. The advantage is that you get rid of the mortgage debt and the credit card debts at the same time, and it costs you nothing! Also, because you've got nothing, it makes any divorce negotiations much, much easier. So, you get rid of the ex at the same time, too. Any children in the marriage?

The main consequence of bankruptcy is that you can't get credit, which is the position you are in now, so no change there. Also, a few jobs are closed to you, eg being a solicitor.

Also, if you are a high earner, you will have to give some of your pay to the TIB, but I don't the impression that you do earn a fortune, as otherwise the £9k debt would not be such a big deal.

Sorry to appear heartless, but it's worth at least considering bankruptcy.

be careful of relying on the above advice wthout specialist advice

GDB2222

Oh, I totally agree with timmyt. You can't rely on anything I say. It says so, right there in my sig. In any case, I hope that nobody would dream of going bankrupt just on the say-so of some bloke on the internet. Clearly, I have only scratched the surface in what I said above, but I think it's worth considering.

Fire_Fox

timmyt wrote: »

be careful of relying on the above advice wthout specialist advice

Whilst you are quite correct at least GDB2222 mentioned the dreaded word 'bankruptcy', the same could be said about your post! What you suggested is voluntary repossession, without once using the word repossession. Handing the keys back without a crystal clear agreement in place could see the OP a decade on suddenly being chased for a shortfall of tens of thousands.