Selling with negative equity

elmonster2002

Hi, I need some help/advice!! I currently have a mortgage on my home, as well as a couple of secured loans. The mortgage totals 23K, the first secured loan (with the mortgage provider) totals 21K and a second secured loan totals 29K (73K in total). In the current market, I would estimate the value of our home to be in the late 40K early 50K region. We would love to move to a bigger house and were looking at renting a property. We are not bothered about walking away from our current property, but just wondered what the situation would be with regards to the large amount of negative equity we have!!! Obviously we would have to pay this, but would any of the secured lenders allow us to sell and pay off the outstanding amount with an unsecured loan? We surely cannot be the only people in this situation now or in the past. Has anyone any advice? Many thanks.

G_M

Only your lender can answer this question.

You are right that on selling the property all the secured loans will need to be paid off, transferred to another property, or moved to unsecured loans.

MobileSaver

elmonster2002 wrote: »

We are not bothered about walking away from our current property ... Obviously we would have to pay this, but would any of the secured lenders allow us to sell and pay off the outstanding amount with an unsecured loan?

As G_M says you need to ask your lenders, to be perfectly frank though I would have thought it unlikely given the size of the shortfall but if you don't ask you don't get.

I assume you realise that it is also entirely up to your secured lenders whether you can sell or not, you will need their permission to sell your home.

mudshark

elmonster2002 wrote: »

would any of the secured lenders allow us to sell and pay off the outstanding amount with an unsecured loan?

They wouldn't care how you got the money but might be hard to find someone to lend you that amount of money unsecured and the rate would be high.