Anyone had experience of selling house for less than owing on mortgage with YBS?

moneyangel22

Hi,

I want to sell my house for less than I owe on the mortgage (in negative equity). The YBS tell me I can do this but will have to agree a shortfall repayment plan with them. Just wondered if anyone had experience of doing this with YBS? or another provider?

Thanks

wymondham

Yep, did this with Abbey many moons ago - as long as you can write out a cheque to cover the difference you'll be fine!

moneyangel22

well that is the problem. They have told me we can come to an arrangement to pay back the shortfall but just wondered how agreeable they are etc?

wymondham

moneyangel22 wrote: »

well that is the problem. They have told me we can come to an arrangement to pay back the shortfall but just wondered how agreeable they are etc?

sounds interesting, did they give any information about what this agreement would be? My lender just insisted on the difference paid in full!

david39

Maybe you should also ask if it will be recorded disadvantageously on your credit history.

I can't see that it should be, other than you are closing a mortgage and the lender is not receiving the full borrowed amount at the time of closure.

Even though they may agree to refinance the balance as a loan, just check with them that they would not class the unfulfilled mortgage as some form of default - it's best to find out before rather than after.