Severe negative equity

Irishgal_2

Thrugelmir wrote: »

Precedent for what? Why the need to consult a solicitor?

I'm not sure the banks have seen anything this severe in terms of shortfall.

I wasn't aware there was an NI forum.

Thrugelmir

Irishgal wrote: »

I'm not sure the banks have seen anything this severe in terms of shortfall.

The amount is irrelevant. There's little the creditors can do. Providing due process is followed and nothing untoward has gone on. Then the matter will brought to a conclusion.

piglet74

My shortfall was £60k, 90% was wrote off.

piglet74

I don't understand the post that says they can't sell up as they can't redeem the mortgage, what does that mean, can someone explain please?

Thrugelmir

piglet74 wrote: »

I don't understand the post that says they can't sell up as they can't redeem the mortgage, what does that mean, can someone explain please?

To discharge the legal charge on the property, i.e. the mortgage. The lender will require full settlement of the debt. If there's a shortfall the lender will not release the charge.

piglet74

Thanks for that

They will via the assisted voluntary sale scheme, I sold mine, with the lenders help, with a 60k shortfall.

Irishgal_2

Thanks all!

I'm just so unsure of the process and it makes me uneasy.

I have lots of research to do!

piglet74

There is no right and no wrong,

It won't be easy whatever you decide, but then again.. What you are doing now isn't easy either!

It worked for me, was the best decision all round, might not be right for everyone, but consider it as an option.

Good luck x

michelle2008

You really do have my sympathy. Given how much house prices have fallen in NI and as you are near the bottom of the market I would really doubt your negative equity is anywhere close to the worse seen by banks.

I know quite a few people whose negative equity runs well into the six figures.

Can I ask have your circumstances changed since you took on the mortgage? What income to debt level did the bank authorise you at?

Irishgal_2

michelle2008 wrote: »

You really do have my sympathy. Given how much house prices have fallen in NI and as you are near the bottom of the market I would really doubt your negative equity is anywhere close to the worse seen by banks.

I know quite a few people whose negative equity runs well into the six figures.

Can I ask have your circumstances changed since you took on the mortgage? What income to debt level did the bank authorise you at?

When we bought the house they lent us 5x our income and charged us a £2,500 higher lending fee. Looking back now it is madness. Try told us after 3 years we could switch to repayment but clearly that couldn't happen.

It's just so sad that it has come to this! We both work 5 days a week to support a 2 year old, all for a terraced ex council house!