Negative Equity sale refused by lender

Jonhubb

When a property is in the possession of the lender either through repossession or surrender and it is in negative equity the lender will follow a protocol for sale


They will appoint two independent valuers to value the property for sale, and base the marketing of the sale on these valuations.


This is to ensure that a fair value at sale is achieved.


However if the property is still in the borrowers possession and an offer is received from the estate agent which would leave a shortfall on the mortgage, should the same protocol be followed to assess value, or can the lender just say no to the sale in an unquantified manner.

Thrugelmir

Lender has to protect it's own interests. So potentially yes they could say no. I would add the huge proviso that individual circumstances are extremely relevant. Without the detail of a specific case. Impossible to be more than a general comment.

kingstreet

If the property is still in the hands of the mortgagor, the lender will want proposals for repayment of any shortfall before agreeing to accept a sale which won't fully discharge the secured debt,