How to engage the bank to do a deal, to sell a poperty in negative equity?

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ronanb78

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3 bed semi that is in negative equity. Bought 2006.
Current value of property would mean a difference of around 50-60k to the outstanding mortagage, if it was sold.
Have never missed a mortgage repayment and have been overpaying mortgage by 500euro per month for nearly a year. But I have just stopped this now.
Tracker is .75% above ECB
Have 20k in savings.

Can anybody advise on how to proceed with the following:
- How to contact the bank? I only ever contact the bank via a letter to the head office in Dublin. Should i go down that route or schedule a meeting with a manager in the closest branch?
- How to open up negotiations? Indicate to the bank that i am going to sell and wait in their response perhaps?
 
From the post it is difficult to establish what you are proposing to do. Are you selling the property because you want to move? Are you selling because your financial circumstances have changed? What is the basis for negotiating with the Bank. I.e. If you are in a position to meet all or part of this mortgage the Bank will not engage with you in agreeing to any write-off.
 
Apologies, I should have mentioned that I am looking to sell and then rent for a while.
Plan is to build in a few years.
Understand that the bank may not be willing to discuss a sell as ive been a good customer up to now. But surely, getting the low tracker of their books along with the cash must be in some way an incentive for them?
Obviosouly, I would be perpared to take on a term loan to get a deal done.
What I am supposed to do if they dont open up to discussions, stop the mortagage repayments....?
 
The Bank should have no issues about you selling the property provided you enter into discussions about dealing realistically with the residual debt. Your best bet is to make an appointment at the branch nearest to you. i don't know what institution you are dealing with but under new legislation all are required to have designated officials for dealing with mortgage problems.
Your main requirement is to agree a deal that gives you a low rate on the residual balance. In order to do that you should plead financial pressure as the reason for selling the property. The Bank are likely to try putting you on a higher rate for the balance but you are in a strong negotiating position on this and raise the issue initially as a proposal to take the financial burden off your back.
 
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