Need Loan Advice for Negative Equity

mightymouse

Hi

Mortgage shortfall i.e. 'if you hand the keys in' is an expensive business because most people 'won't' or 'can't' deal with it straight away.

You are positive and you would be willing to borrow the money if you could.

Therefore you are prepared to resolve all issues now, if you discuss this with the lender to accept the deal, make sure its someone who understands the problem at the lender.

If THEY bury their heads to your situation then they will have to account for this after repossession.(If you decide to hand keys in / repossessed)

It is useful if you make detailed notes (record the conversation if you can).

There are many arguments in this area but the lenders have 12 years to recover mortgage shortfall (six for contact) so by keeping an accurate record of what happens now will be gold dust in negotiations later on.

I do not mean to ramble but if you want to sell now what are your options or are you tied (bonded) to this house for as long as there is negative equity?

There are many twists and turns depending on whether you keep your property or buy another or rent.

mightymouse

Hi

After reading my post I would have thought that if your solicitor was articulate he / she could sort this and agree on paperwork and of course charge you but wouldnt it be worth it.

p.s. The lender may want a seperate valuation and I would expect that.

mightymouse

Hi

Just to let you know I have picked up on your other posts and also noted what you say re your solicitors.

You might still consider an Individual Voluntary Arrangement and put the shortfall into it if the circumstances fit.

good luck whatever you do.

Hermione54

What are YES FINANCE like as a company?

I have no personal experience of them, but if you look at other posts on this board about Yes Finance you will discover that they are, to say the least, not highly regarded!

silvercar

You need to try to get the second mortgage company to understand that if they don't accept a reduced payment now, with an agreement to repay the remaining amount of the next few years, they will end up with nothing.

If you try to get them to accept that you will be repossessed / hand keys in and they will be left with nothing they may be more helpful.

This is extrordinary difficult to do because they almost work on the principle that they won't negotiate on a secured loan just because it is secured. Not only do they not see the bigger picture in terms of individual cases but they don't want to paint a pattern of negotiating on secured loans in case word gets out and everyone tries it!

mightymouse

Hi

Just one more point to follow on from silvercar, the second mortgage company will have to continue to pay out fairly large sums to repossess your property protect and insure it and finally sell it (estate agents fee, solicitors fees etc) all out of their own pocket but if you did go bankrupt (always a nice threat) where do they recover their money from then?

Also to be liable for (£1100 both) continuing interest in repect of the first mortgage as that debt will continue to grow with no interest being paid and depending on amounts being lent the first mortgage company may not want to take that risk so might insist on it being sold.

What would your property fetch at an auction and how much would be lost then when added to the above. £20k - £40k?

Breadsticks_2

Thanks everyone.

Just want to clarify that I was asking about YES LOANS and not YES CAR CREDIT.

Hubby has decided to apply for an unsecured loan with them to see what happens, I'm also going to try to negotiate again with the mortgage company and speak to our solicitor.

If we are still short and can't get help anywhere then we'll just stay put, simple as that. It would make more sense to move but it's not the be all and end all.

B x

P.S - Just found the feedback about YES Loans and realised how poorly recommended they are so will have to look for another unsecured 'high risk' lender.

pinkshoes

I don't think there's many "High Risk" lenders that have a good recommendation!! They lend money to people in financial difficulty, then take great pleasure in making them pay for the rest of their lives!!

Could you not stay put for a year, take in a lodger to help with mortgage payments, and THEN sell a year later?

Can I ask how you ended up with negative equity on a property when prices have risen so much in the last 7 years?!?! Are you saying you bought a house with no deposit, have an interest only mortgage, and it's dropped in price by £10k in 7 years?!?! sorry, i'm blonde and get confused easily!

smileitconfusespeople_2

we used Norton finance and borrowed 40k and after 7 years owed nearly 70k neven ever never again we could never get the same settlement figgure quote it was only after we said we were going to take them to court we settled on a mutal amount!!

nomoneytoday

Can't you stay in the current house for another year?

Its only negative equity at the point you move. At the moment the debt is a secured loan and isn't in arrears etc