Bank reducing a mortgage by 85k, is this legit?

RebeccaSimpson19

I was recently contacted by these guys Negative Equity NI

They told me they could negotiate down my mortgage, this is a message on their Facebook page (search negative equity Ni on Facebook)

"A case completed last week where one our clients had a mortgage of £155,000 with one of the main high street lenders. The property was in serious negative equity. We have managed to negotiate with the lender who accepted £70,000, writing off £85,000.

Fill in the form on our website and we'll book you a FREE consultation"

Is this legit? Sounds too good to be true.

Becs

opinions4u

They'll charge you a fee to do what you can do for yourself.

Anything they can negotiate will be on disposal of the property. The lender won't just write it off while you're still living there.

So you'll have to sell / be repossessed to achieve what you want.

My view? You'd be employing and paying a company to do something that can be done by yourself.

RebeccaSimpson19

Thank you for the response, is there any information doing this online as their site does not fill me with confidence at they don't even have a 9-5 office (they have a call answering service).

ACG

No lender will just reduce your balance.
If the lender is looking to reduce their mortgage book, they may right some of it off if you move elsewhere.

But you need to be very careful, it could potentially ruin your credit report. Being in negative equity in itself isnt a major problem. It only becomes a problem if your looking to sell.

NYM

http://www.nihe.gov.uk/index/news/news-northern-irelands-negative-equity-nightmare.htm

....'With an estimated 35% of homes in Northern Ireland in negative equity, if all were to give up the home, 35% of properties here would be for sale driving property prices down further, which would be detrimental for the economy'....

Shocking statistic :eek:

Considering the number of properties involved, I think it's highly unlikely that Lenders will just write-off some of the debt.