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selling with negative equity
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stevieg_83
Posts: 21 Forumite
Hi folks,
Wonder if you could assist me?
I've got the prospect of a great job in the US, paying much more than I currently earn.
My issue though surrounds our house here in Scotland. As things stand, there's no way we'd sell our house for what we'd need it to go for to clear our mortgage. There's a house in much better condition than ours just up the road on at offers over £90k.
We paid £125k for ours in Jan 08 - our mortgage was £115k.
What happens in the situation where we sell for less than it takes to clear the mortgage?
There's also another spanner in the works though. We have a letter of inhibition on selling the house due to business loan I have with PSYBT. Assuming that they want notified of the house being sold so that they could get a cut of any profit made to clear the loan.
That's clearly not going to work for them.
Advice appreciated.
Thanks,
Steven
Wonder if you could assist me?
I've got the prospect of a great job in the US, paying much more than I currently earn.
My issue though surrounds our house here in Scotland. As things stand, there's no way we'd sell our house for what we'd need it to go for to clear our mortgage. There's a house in much better condition than ours just up the road on at offers over £90k.
We paid £125k for ours in Jan 08 - our mortgage was £115k.
What happens in the situation where we sell for less than it takes to clear the mortgage?
There's also another spanner in the works though. We have a letter of inhibition on selling the house due to business loan I have with PSYBT. Assuming that they want notified of the house being sold so that they could get a cut of any profit made to clear the loan.
That's clearly not going to work for them.
Advice appreciated.
Thanks,
Steven
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Comments
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You will have to find the extra money from somewhere to pay-off the difference between the outstanding mortgage amount and whatever the house sells for. You will alos have to find the money to pay PSYBT whatever you owe them."You were only supposed to blow the bl**dy doors off!!"0
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OK - that money doesn't exist. Where does that leave things?0
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stevieg_83 wrote: »OK - that money doesn't exist. Where does that leave things?
This means you cannot sell the house unless you can get an agreement with both the bank and PSYBT on how you will pay them any shortfall in what they are owed.Every generation blames the one before...
Mike + The Mechanics - The Living Years0 -
You will find it impossible to sell the house - have you considered asking the lender for permission to rent it out??"You were only supposed to blow the bl**dy doors off!!"0
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stevieg_83 wrote: »OK - that money doesn't exist. Where does that leave things?
Unfortunately it leaves you unable to sell the house until you can afford to pay everyone that has charges over it.0 -
maninthestreet wrote: »You will find it impossible to sell the house - have you considered asking the lender for permission to rent it out??
A friend of mine did this with his house when he went to NZ for a year, but he had to come back early as the rental just wasn't covering the repayments. Can you really afford to pay the difference between the rental and mortgage and the rental on somewhere else?0 -
More to the point, can you really afford to pay the full mortgage while you're away. You may not be successful in getting tenants.0
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Thinking about the first post and comments thereafter, they don't make any sense.
What would happen if I were made redundant and needed to sell the house then? I wouldn't really have a choice other than to sell.0 -
stevieg_83 wrote: »Thinking about the first post and comments thereafter, they don't make any sense.
What would happen if I were made redundant and needed to sell the house then? I wouldn't really have a choice other than to sell.
You can't sell the house whilst within negative equity. the comments do make sense you just don't like what they're telling you.0 -
first makes perfect sense
in that situation the bank would probably repossess0
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