Birmingham Midshires Negative Equity Shortfall Arrangements

bigfoot1983

Hi Anyone, I am currently in the unpleasant position of having to sell my flat which is in negative equity. current position is as follows:

Interest only mortgage of £130k
original property valuation of £147k
current estimate £90-100K

My query is, I am waiting a call back from Birmingham midshires now but has anyone any experience with them in this instance and is there any way to negotiate a lower settlement figure for the shortfall as I simply can not afford to pay off a £30k loan.

Have made myself aware of bankruptcy bits as a worst case, but currently unsure of how\if this would affect my employment and company car.

any advice greatly appreciated

TrickyDicky101

Have Birmingham MS confirmed that they will allow you to sell the property with the shortfall in place? If not you won't be able to whatever your wishes on the matter.

bigfoot1983

just waiting on call back. if they come back stating that they dont want me to sell, my only current avenue left would be to explain to them that if I dont sell it will end up being repossessed by them costing them more and chances are by sale I would get more than they would. Sound right?

pinkteapot

Impossible to advise until we know what they've said. Some lenders will convert it to a loan, some won't. Find out if they'll convert it to a loan and, if so, the length of it, the interest rate and the monthly repayment.

I wouldn't go straight in saying you can't afford to take on the whole loan. Get the loan terms from them (if they'll offer one), then go through your figures again and then speak to them again if you won't be able to afford it.

tim123456789

bigfoot1983 wrote: »

just waiting on call back. if they come back stating that they dont want me to sell, my only current avenue left would be to explain to them that if I dont sell it will end up being repossessed by them costing them more and chances are by sale I would get more than they would. Sound right?

you know that, I know that and even they know that.

It wont make any difference to their answer.

tim

Aammey

Hi bigfoot1983,

I am currently in a very similar position with Birmingham MS.
Did you get a response from BMS in the end?

piglet74

I was in the same situation with GE Money and was offered an assisted voluntary sale,

Ask BM do they offer this scheme, as part of my deal GE wrote off 90% of my 60k shortfall and covered EA and solicitors fees

Its worth a shot.