We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Selling - negative equity
Comments
-
you need to come to an arrangement with the lender to convert the amount unpaid to an unsecured loan. If the lender won't agree then you should try and get a loan elsewhere so that the mortgage will be repaid at time of sale. If you can't clear the mortgage (or reach agreement with lender) the sale can't proceed.
The thing to be careful of, is that you and your ex are jointly liable for the shortfall. You can't say to your lender here is my half of the shortfall chase my ex for the other half, it all has to be sorted prior to sale.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
BiggaThanBen wrote: »missed your breakfast ? )
lol yes, actually I did!
A BLT is so much more tempting in today's market than a BTL.
And now you've got me thinking about bacon sandwiches... Am going to go and sweettalk the canteen into making me one! Brown bread or white? Ketchup or brown sauce?Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
How amicable is the split?
What are the chances of you both keeping your shares of the house and renting it out for a while until the early redemption period is finished.
Maybe your partner could carry on living their (paying their half of the mortgage) and you could rent out "your half" to pay your half of the mortgage?
If things aren't amicable then I'd have thought you would need to take legal advice...0 -
Hi
Silvercar is quite right that you need to come to an agreement with the lender and also agree the valuation of the property.
However.............if you can't reach an agreement and there are no other options available work out how much you would need to discharge their liability.
Then ask you solicitor to write to the Head Office to say that whilst you have a ready and willing buyer IF you find you have to hand them the keys then you will accept no further liability than the amount discussed.
This is an extreeeemly risky action to take but it might work depending whether you want to sell now or see if values fall further.
This is only the action that I would take and if its not for you then don't do it.
With NR they might accept an arrangement they seem good at it.0 -
mightymouse,
I'm afraid I can't follow what you're suggesting. Sounds like it might be good advice, but you lost me. Could you explain it again, maybe giving some examples of figures?
Jim0 -
Hi Jimmy
Sorry if its not clear.
I need to re read op but firstly it may not be good advice, it depends on your point of view..
If its a choice between selling at a loss or handing in the keys then which option will produce the bigger loss.
If the lender sells then it will be expensive with no guarantee of getting the price that someone is willing to pay now.
In any Court action that follows for Mortgage shortfall the lender will have to account for their actions and the op or anyone will stand a better chance of reducing the claim if they have tried to get the better price and have facts and figures to back this up.
Be warned the Lender is under no duty to agree this as they will see it as holding a gun to their head.
However they are under a duty to get the highest price for the house and unless they are not very bright they should realise that a bird in the hand etc, they should deal now.0 -
Oh I see what you mean. It _is_ like holding a gun to their head.
I see where you're coming from, but think it's time the OP takes legal advice.0 -
Henneb......As a matter of interest, do you have any children?0
-
0
-
I think mightymouse is on the right line. You have several options;
1. Rent out - terrible idea, a property you don't want with an ex partner in a falling market.
2. Obtain loan from bank/family to cover shortfall on sale.
3. Negotiate with NR. See if they will waive or at least reduce penalty, or/and see if they will accept shortfall paid over, say, 12 months. As mightymouse says put in writing from your lawyer. State firmly that this is the best option for them (as well as you). Maybe back up with letter from EA about current values.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards