Negative Equity House Sale

mikkir

Hi Peeps, my wife worked for the social services earning decent money, then 8 years ago she was diagnosed with motor nuerone disease which is progressive, as a result she lost her job and we now struggle on a quarter of our earnings of 12 months ago.
We have an interest only mortgage of 150k on a house worth about 110k we also have a 2k second charge on the property we are currently about 5k in arrears.
My wives relatives are currently converting a property for us to live in but we will not own it. It will be disabled "future proof" as the the prognosis isnt good.

2 questions : Can I sell a house in negative equity?
Should I just declare bankruptcy and walk away?

Any ideas , info or opinions are much appreciated.

Ta

Mik

Old_Git

you can sell with negative equity ,you need to ask the lender .As for bankruptcy ,if you sold you would own nothing and owe £30,000 plus .
I wouldn't volunteer to go bankrupt .You have to pay to go BR.
You can either arrange a repayment plan ,or let the lender make you BR.

G_M

mikkir wrote: »

2 questions : Can I sell a house in negative equity?
Should I just declare bankruptcy and walk away?

Any ideas , info or opinions are much appreciated.

Ta

Mik

You cannot sell a property with a Charge remaining on it. What buyer would want to take over your mortgage liabilities!!?

So when you sell, the Charge (mortgage)must be removed. Either
1) by paying off the mortgage in full, using the proceeds of the sale plus other cash (savings, loans from family, whatever) or
2) by getting the mortgage lender to agree to remove the Charge even with the mortgage debt unpaid. You would have to ask their permission.

Bankrupcy is the last option to take - don't consider this till you've considered all other options.

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