Negative Equity - Possible way out?

JQ.

Yellabowley wrote: »

We've already established that there is another option. The mortgage companies may be willing to convert the debt into a loan. Therefore being in negative equity does not necessarily prevent you selling your house. Which is the point I was trying to make as I had presumed that if I didn't acheive a certain selling price that I'd be stuck with it until prices picked up again.

There's nothing new there, that's always been the case. The reason people feel trapped in negative equity is because once you've done that you can't buy another house as you have no deposit, which is why people prefer to stick it out in their current house.

This thread has been about you having received Expert advice from a Chartered Surveyor and a Banker that if in Negative Equity you can walk away from the shortfall liability beacause you can offest the interest payments against the capital shortfall. As I said earlier, I'm only persisting on this thread for the benefit of other people reading who may take your comments as gospel.

You also don't actually need to involve your lender in the shortfall liability, just take out a short term personal loan. However, it's best to involve your lender as they might offer you a better interest rate or better terms.

SingleSue

wolfplayer wrote: »

Did you pay anything of that debt when they came back 10 years later, or just told them to go swivel?

We came to an agreement to pay a proportion of the debt with the help of CAB.

Yellabowley

JQ. wrote: »

There's nothing new there, that's always been the case. The reason people feel trapped in negative equity is because once you've done that you can't buy another house as you have no deposit, which is why people prefer to stick it out in their current house.

This thread has been about you having received Expert advice from a Chartered Surveyor and a Banker that if in Negative Equity you can walk away from the shortfall liability beacause you can offest the interest payments against the capital shortfall. As I said earlier, I'm only persisting on this thread for the benefit of other people reading who may take your comments as gospel.

You also don't actually need to involve your lender in the shortfall liability, just take out a short term personal loan. However, it's best to involve your lender as they might offer you a better interest rate or better terms.

The thread has never been about expert advice. It was something my sister and aunt had both heard of and as a result I asked in my first post for opinions from anyone who may be an expert. In fact I actually said in my first post for people not to take what I said as Gospel. I thought I'd made it clear but my apologies if people misunderstood.

Thanks for your advice anyway.