Selling house in negative equity

Manchee

Sally22 wrote: »

No one who goes to these sort of companies has to take the money they offer, everyone has the option to walk away

But I think the point they are trying to make is people who use the 'we buy any house' type companies are generally in a situation where they need to sell and to sell quickly, and it isn't until they are in deep and can't afford to pull out that the price they offer starts dropping. Sure, no one has to take the money, but I think you'll find with a lot of people using these companies it isn't as simple as that.

tim123456789

jdogg1976 wrote: »

Hello again, this is a follow up to my previous thread about considering voluntary repossession. https://forums.moneysavingexpert.com/discussion/4704249

I got so much great advice from everyone, thanks again for all who responded.

I am looking into the auction route. I have not heard back from a company I contacted last week, I will need to chase them up. I also contacted another auction company who I expect to hear back from tomorrow.

In the meantime, I have also been revisiting the we buy your home companies option, and contacted webuyanyhouse. They have offered me more than I got offered from a similar company last year but its still less than I owe on the mortgage.

Does anyone have any experience in this area? Can I sell to them and negioate a payment plan for the shortfall win my mortgage company. Or is it likely the mortgage company will not entertain it?

The offer I have received is approx £12000 less than I owe on the mortgage.

It is almost certain that the mortgage company will not let you sell at this price unless you can cover the shortfall some other way

jdogg1976

Well things are now starting to move regarding auction route. I have someone coming round tomorrow to take photos of the property. Hopefully the first step to a happy solution.

midnight68

Hi Jdogg,
I have just gone the auction route for selling, due to similar ASB you have been having. So sorry you are going through this.
Upfront fee for auctioneer was £390 inc VAT. Solicitor wanted money "on account" of £250, their bill to do an auction sale is just under a thousand, but that is paid when it sells, probably from the ten percent the winning bidder has to pay on the day of auction.

Perhaps contact a couple of auctioneers and then you can barter the fees they charge. Mine charged 2%, or a minimum of £2,500, plus VAT, which adds a lot on, believe me! I found others charged up to 3.5% of sale price and were more expensive with their upfront fees, around £500. The auctioneers will tell you the guide price and your reserve will be very close to this. It will be under market value by about 20%.

Run up to auction - some interest/viewers, and some silly offers (around £20 - 30,000 less than the guide price) did not accept them.
Lot unsold on auction day:( so auctioneers marketed still and managed to get a buyer about a month later (still way less than I wanted, but no shortfall thankfully - and how do I price my sanity and safety??), exchanged, and due to complete soon. I think am going to buy a boat and never be trapped again.

If the property wasn't sold, I would have had to find the rest of the money for the solicitor.... let alone what I'd already spent. Oh and you need an EPC, which is around £70 in my area.

I hope my experience helps you, sorry the info is a bit jumbled.
Good luck to you

kingstreet

You MUST establish if your mortgage lender will allow you to sell the property before you make any commitment. You need to come to an agreement with them for the repayment of any shortfall after the sale, otherwise they will not remove the charge and you will not be able to sell.

If this happens after the auction, you'll be facing a breach of contract action as well as still be suck with the property.

jdogg1976

midnight68 wrote: »

Hi Jdogg,
I have just gone the auction route for selling, due to similar ASB you have been having. So sorry you are going through this.
Upfront fee for auctioneer was £390 inc VAT. Solicitor wanted money "on account" of £250, their bill to do an auction sale is just under a thousand, but that is paid when it sells, probably from the ten percent the winning bidder has to pay on the day of auction.

Perhaps contact a couple of auctioneers and then you can barter the fees they charge. Mine charged 2%, or a minimum of £2,500, plus VAT, which adds a lot on, believe me! I found others charged up to 3.5% of sale price and were more expensive with their upfront fees, around £500. The auctioneers will tell you the guide price and your reserve will be very close to this. It will be under market value by about 20%.

Run up to auction - some interest/viewers, and some silly offers (around £20 - 30,000 less than the guide price) did not accept them.
Lot unsold on auction day:( so auctioneers marketed still and managed to get a buyer about a month later (still way less than I wanted, but no shortfall thankfully - and how do I price my sanity and safety??), exchanged, and due to complete soon. I think am going to buy a boat and never be trapped again.

If the property wasn't sold, I would have had to find the rest of the money for the solicitor.... let alone what I'd already spent. Oh and you need an EPC, which is around £70 in my area.

I hope my experience helps you, sorry the info is a bit jumbled.
Good luck to you

Thank you for this. Sorry about delay, not been on for a while, between work commitments and trying to get this matter sorted.

I have had some bad news. The company I went with said they have contacted three surveyors and they have all came back saying the minimum I wanted is actually the maximum they would value it at, and because of this the company I have went to a no longer willing to pay for my home report up front.

So I am back to square one. I cannot afford the home report money, and even if I could, I'm not prepared to pay it when It looks like I'd be able to get the minimum I need.

Also, the webuyanyhouse website offered me far less than I need as per my original post here so it looks like I might have to go down the voluntary repossession route or face staying where I am scared witless about being the victim of vandalism again.

jdogg1976

kingstreet wrote: »

You MUST establish if your mortgage lender will allow you to sell the property before you make any commitment. You need to come to an agreement with them for the repayment of any shortfall after the sale, otherwise they will not remove the charge and you will not be able to sell.

If this happens after the auction, you'll be facing a breach of contract action as well as still be suck with the property.

I will contact the mortgage company and explain my situation.