Negative Equity/Secured Loan Advice

PeterO

Long time forum watcher, looking for advice on how best to proceed.

My ex-wife and I have been trying to sell our former home (it's empty) for nearly a year, without success. Now have an offer that would leave the second mortgage underfunded to the tune of £20K.

Paragon, who the second mortgage is with, can seemingly block/slow down the sale unless we can come to some arrangement re paying down the balance. There are substantive other unsecured debts involved. Because of balance of income, I'm going to end up being primarily responsible for paying down all debts, irrespective of legal liability. That's just the way it is and I'm kind of resigned to that.

I can probably afford to continue to pay Paragon at much the same monthly rate as I currently am. i.e. The loan repayments are up to date. There is however NO possible way of paying them off early/lump sums etc.

What I'm interested in, before I talk to Paragon, is what my reasonable negotiating position might be?

Thrugelmir

PeterO wrote: »

What I'm interested in, before I talk to Paragon, is what my reasonable negotiating position might be?

You're not in a position to negotiate as such. As obviously Paragon are continuing to receive payment of the debt. You'll need to come to an arrangement that they find acceptable.

If your overall financial situation is difficult. Have you sought advice as to the best way forward.