Empty house with negative equity

naf123

With a rental income of 550 to 600 per month , you should really be on a repayment mortgage with view to lowering the balance owned. Eventually the equity would be low enough to sell it and pay off the mortgage. 

CSI_Yorkshire

Hard_up_dad said:

I guess I came here to see if there’s a way to get a mortgage company to move on the shortfall amount 

No, mortgage lenders don't just write-off the balance unless there is no possibility of repayment - i.e. you are declared bankrupt.  A bit of a chat with them will not fix anything.

RelievedSheff

Hard_up_dad said:

I love everyones hope but you haven’t been to this estate between Durham and Sunderland 😂 - rental income would be about £550 - £600 per month once sorted I think. Fingers crossed I get the amount the mortgage company need. 

I guess I came here to see if there’s a way to get a mortgage company to move on the shortfall amount 

I think you will probably be surprised at the agents valuation.

Hopefully it is enough for you to clear the balance owing.

davemorton

Care to name the village op?

amnblog

It cannot be sold without the Lender's permission so if the net sale proceeds do not cover the mortgage you need to make other arrangements with Northern Rock.

Herzlos

Hard_up_dad said:

I love everyones hope but you haven’t been to this estate between Durham and Sunderland 😂 - rental income would be about £550 - £600 per month once sorted I think. Fingers crossed I get the amount the mortgage company need. 

I guess I came here to see if there’s a way to get a mortgage company to move on the shortfall amount 

At £40k that'd be a 16% rental yield which is huge.

Unless there's something really undesirable with the area or in really bad repair I'd be stunned if it wasn't worth more than you paid.

As a contrast, we bought in the summer of 2007, for about £110k that was quickly worth £90k and it's now valued at about £140k.

Another option would be speak to a letting agent and see if you can get them to take care of the property for you and hopefully you get enough money after feeds to cover the mortgage with a view to paying it down.

RelievedSheff

Herzlos said:

Hard_up_dad said:

I love everyones hope but you haven’t been to this estate between Durham and Sunderland 😂 - rental income would be about £550 - £600 per month once sorted I think. Fingers crossed I get the amount the mortgage company need. 

I guess I came here to see if there’s a way to get a mortgage company to move on the shortfall amount 

At £40k that'd be a 16% rental yield which is huge.

Unless there's something really undesirable with the area or in really bad repair I'd be stunned if it wasn't worth more than you paid.

As a contrast, we bought in the summer of 2007, for about £110k that was quickly worth £90k and it's now valued at about £140k.

Another option would be speak to a letting agent and see if you can get them to take care of the property for you and hopefully you get enough money after feeds to cover the mortgage with a view to paying it down.

Our situation was similar. We bought in late 2007 for £85k but took out a £90k mortgage. Property price quickly dropped to around £70-75k. That same house now would be valued around £125k.

And this is in a not so desirable area.

Hard_up_dad

davemorton said:

Care to name the village op?

Hetton Le Hole 

Workerdrone

CSI_Yorkshire said:

Hard_up_dad said:

I guess I came here to see if there’s a way to get a mortgage company to move on the shortfall amount 

No, mortgage lenders don't just write-off the balance unless there is no possibility of repayment - i.e. you are declared bankrupt.  A bit of a chat with them will not fix anything.

Unless you can disappear until the 12 year statute of limitations is up

Forester50

Workerdrone said:

CSI_Yorkshire said:

Hard_up_dad said:

I guess I came here to see if there’s a way to get a mortgage company to move on the shortfall amount 

No, mortgage lenders don't just write-off the balance unless there is no possibility of repayment - i.e. you are declared bankrupt.  A bit of a chat with them will not fix anything.

Unless you can disappear until the 12 year statute of limitations is up

Errr no because Statute of Limitations not applicaple here. The lender has a charge on the property which will remain forever until it is discharged through payment or other agreement.