'Negative Equity NI' - worth the £300 fee?

glizzie84

In 2007 we bought a house for 141k and paid a deposit of 13k leaving a mortgage of 128k. We had outgrown the house and moved out in 2010 and let the house out. The house is now worth about 80k so we have negative equity and are unable to sell.

I contacted 'Negative Equity NI' to see if they could negotiate on our behalf. The first consultation is free and we meet them on Wednesday. The next step is paying £300 for them to look up all our records etc.

Is it worth it? Are they usually able to negotiate a reduction on the debt if your situation changed? (2 children came along). Our mortgage is through 'Mortgage express' who have been taken over by bradford and bingley and they want rid of their mortgages so this may work in our favour?

Has anyone had experience with these companies? Any advice would be great, thanks.

~Beanie~

No experience but smells like a scam to me. If they could negotiate anything (and I seriously doubt that they can) then why couldn't you do it yourself for free? What records exactly are they going to look up?

I wouldn't be parting with a penny.

glizzie84

I suppose they basically negotiate on your behalf? The guy on the phone said 'what we do is we put your house up for sale, get an offer of say £80k, go back to your mortgage lender and say they have outgrown the house, they want to move on, they have an offer here, are you prepared to meet them half way' etc.

I'm almost certain it can be negotiated, but I hate the thought of paying £300 just for the lender to say "no".

G_M

You have a shortfall of money.

Why on earth would you want to pay out more money to someone who is going to say things to your mortgage lender that you can say yourself???!!

If you are determined to use an intermediary because you don't want to speak to the lender yourself, PM me and I'll do it for £250.

glizzie84

I don't know if I can just go to my lender and negotiate? What would I need to prepare? Would I be able to knock off the same amount as they can? I don't know.

I would be interested to know if anyone has done this themselves and got the debt down?

G_M

glizzie84 wrote: »

I don't know if I can just go to my lender and negotiate? What would I need to prepare? Would I be able to knock off the same amount as they can? I don't know.

I would be interested to know if anyone has done this themselves and got the debt down?

Why would someone who is not party to a contract be better able to discuss/negotiate that contract than one of the actual signatures to the contract?

:huh:

Pixie5740

I'll do it for £200.

Does your lender know you are letting the property out? Do you have consent to let?

Where are you living now? Rented accommodation? Did you buy another property?

gazter

G_M wrote: »

Why would someone who is not party to a contract be better able to discuss/negotiate that contract than one of the actual signatures to the contract?

:huh:

third party negotiators are often much better in many areas of life. Not an endorsement of these people of course, but im sure weve all been on, or know someone who has been on the wrong end of a skilful negotiation to know that it can make all the difference.

nubbins

Where on earth in the UK did you buy a house in 2007 that is now worth 40% less?

slopemaster

nubbins wrote: »

Where on earth in the UK did you buy a house in 2007 that is now worth 40% less?

Clue in the thread title...

ManuelG

nubbins wrote: »

Where on earth in the UK did you buy a house in 2007 that is now worth 40% less?

I didn't like to ask...

And yes, as someone who went to a market in Italy and spent more on his present than it was listed for, I'd be all for someone other than me doing my negotiations.

I would, however, not be handing over £300 without some kind of proof they were any good;)