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Short Selling a house and getting lender to write off difference?
MajorTom_2
Posts: 77 Forumite
Hi guys,
Just wondering if anyone has come across this or heard of this happening, I know all situations are different.
The misses and I own a house and she still owns another house with her ex up north. She/they have been trying to get rid of the house for about 2 years now and with prices dropping its value is just on what the mortgage is owing (about £160k).
The mortgage is on a lifetime tracker of about 2% above base so the lender isn't making huge amounts at the moment with around 25 years left.
After reading about people being offered £20k or so to move their mortgages to another lender, I was thinking if anyone has come across nagotiating with the lender to short sell (say £15k less, auction etc) and writting off the difference to relend that money to someone else at a higher rate, it would surely benefit them (interest wise) in the future and it saves my misses from flushing money down the drain on a house that isn't gaining any value.
They don't really want to rent it anymore as the last tennant trashed the place and left us with a £1,000 repair bill.
Cheers,
Just wondering if anyone has come across this or heard of this happening, I know all situations are different.
The misses and I own a house and she still owns another house with her ex up north. She/they have been trying to get rid of the house for about 2 years now and with prices dropping its value is just on what the mortgage is owing (about £160k).
The mortgage is on a lifetime tracker of about 2% above base so the lender isn't making huge amounts at the moment with around 25 years left.
After reading about people being offered £20k or so to move their mortgages to another lender, I was thinking if anyone has come across nagotiating with the lender to short sell (say £15k less, auction etc) and writting off the difference to relend that money to someone else at a higher rate, it would surely benefit them (interest wise) in the future and it saves my misses from flushing money down the drain on a house that isn't gaining any value.
They don't really want to rent it anymore as the last tennant trashed the place and left us with a £1,000 repair bill.
Cheers,
0
Comments
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The people who are offered cash to go elsewhere usually have loans with lenders who want to pull out of the market. So - who is your wife's lender?0
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Nationwide.
Cheers,
MT0 -
Sorry, I reckon you're out of luck in that case. Nationwide is still (just about!) a nice traditional building society, and I can't see it pulling out of the business of mortgage lending.0
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and it saves my misses from flushing money down the drain on a house that isn't gaining any value.
Bite the bullet and take the loss on the chin. Your wife is jointly and severally liable for the debt, the lender has the added security of your property. So no need for the lender to take a capital loss.0 -
The prices of properties have been soaring these years; it is an ideal time to sell your house. Hiring a good real estate agent will aid you to follow all the legal issues appropriately and get a wholesome price for your house. Free online valuation software is also available these days to find out the worth of your house approximately.0
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Where've you parked the De Lorean, Kurt?The prices of properties have been soaring these years; it is an ideal time to sell your house. Hiring a good real estate agent will aid you to follow all the legal issues appropriately and get a wholesome price for your house. Free online valuation software is also available these days to find out the worth of your house approximately.
US spammer by any chance?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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