Seller has come back with a 'can't go lower than' offer?

Ciderarmy1987

moneyistooshorttomention wrote: »

Regarding negative equity being "taking their debt on" - I would suggest that anyone in a negative equity situation wouldn't be thinking "How can I find someone to take my debt on?". Their thinking would much more likely be "I'm not in debt and I don't intend to be forced into going into debt. I'll just wait to sell until such time as I know a buyer couldn't put me into debt to move on...." and that's the house probably taken off the market and unavailable to buyers for a while.

I suspect there are a lot of houses currently waiting to even get put up for sale at all at the moment because the owners don't intend to be put in a situation of going from debt-free to being in debt and will therefore wait for house prices to rise before marketing theirs. I have been very surprised at how few houses there are for sale in my area, compared to the number I would have expected...and I expect that's much of the reason why.

If you owe the bank 200K on a mortgage you clearly arent "debt free" are you!!!!

MORON!

k0sh

mummyroysof3 wrote: »

We have had an offer on a £140000 house of £13000 rejected. Estate agent has suggested offering to meet at £135 but I was only going to offer £132 as that's what I asked natwest for. Will need to Suss out first if I can go any higher or not first I think on Monday

Stick to £132,000 they will go for it. The EA is trying it on.

moneyistooshorttomention

Ciderarmy1987 wrote: »

If you owe the bank 200K on a mortgage you clearly arent "debt free" are you!!!!

MORON!

I didn't realise there would be a person who needed an explanation. Here goes:

- There is "mortgage"
- There is "debt"
- For some people there are "student loans"

If someone is unable to redeem a mortgage fully on selling a house then the shortfall (the negative equity) then becomes debt that they have to carry on over with them after they have sold the house and they will have to repay this debt (on top of having to find any money they need for "mortgage" payments on any subsequent property they buy)

Hmmm...I think I've explained it in simple enough language for anyone to understand..:cool:

Ciderarmy1987

moneyistooshorttomention wrote: »

I didn't realise there would be a person who needed an explanation. Here goes:

- There is "mortgage"
- There is "debt"
- For some people there are "student loans"

If someone is unable to redeem a mortgage fully on selling a house then the shortfall (the negative equity) then becomes debt that they have to carry on over with them after they have sold the house and they will have to repay this debt (on top of having to find any money they need for "mortgage" payments on any subsequent property they buy)

Hmmm...I think I've explained it in simple enough language for anyone to understand..:cool:

I really think that to treat a mortgage as anything other than a debt is absurd! what happens if you fall behind on your payments...... erm the bank will sell the house right? I think that you have a big illusion that you actually own the house that you live in!!! until you are mortgage free you are little more than a well protected long term tenant of the bank

phoebe1989seb

moneyistooshorttomention wrote: »

I didn't realise there would be a person who needed an explanation. Here goes:

- There is "mortgage" = debt
- There is "debt" Yes, a mortgage is just that!
- For some people there are "student loans" = also a debt

Agree with Ciderarmy - I can't see personally how a mortgage is anything other than a debt

chappers

Ciderarmy1987 wrote: »

until you are mortgage free you are little more than a well protected long term tenant of the bank

That is not strictly true, you do own the property in as much as you have the right to dispose of that asset as you will, within the constraints of your mortgage, which is the liability attached to that asset.
In a tenancy situation you would have no rights of management over the asset, but would still have the liability of rent.

Back to the OP, you can only offer what you think the property is worth, whether they agree with you or not is another matter.
Don't get emotionally involved with their "we can only sell for so much " spiel, it's got nothing to do with you.
They may well have a loan to cover of £x , but if houses like theirs are going for £X-£Y then they aint going to sell at £X.

zzzLazyDaisy

moneyistooshorttomention wrote: »

If someone is unable to redeem a mortgage fully on selling a house then the shortfall (the negative equity) then becomes debt that they have to carry on over with them after they have sold the house and they will have to repay this debt (on top of having to find any money they need for "mortgage" payments on any subsequent property they buy)

Hmmm...I think I've explained it in simple enough language for anyone to understand..:cool:

Actually, I don't understand what you are saying.....

I don't know of any lender that would consent to the sale of a house if the mortgage (the secured debt) was not paid off in full, which is why so many people are stuck in negative equity. So you would need to get a loan to pay off the outstanding balance of the mortgage at point of sale. I agree at that point it becomes unsecured debt which would still have to be serviced.

What I don't get is your comment that this would be on top of any payments on the mortgage for the future property, as you would have no deposit (there are no 100% mortgages these days).

Ciderarmy1987

moneyistooshorttomention wrote: »

Hmmm...I think I've explained it in simple enough language for anyone to understand..:cool:

Clearly not then, try again maybe.......