selling house for less than mortgage owing

justo

Registered User
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129
Hi all,

Apologies if this has been asked before...

I have a mortgage of about 250k outstanding on my home; good track record with repayments and never in arrears.

Do banks entertain the idea of selling the house for say 200k and setting up a personal loan for the balance of 50k over 15 years or so?

Thanks.
 
I think the only way you will truly get an answer to this is to ask the bank that question. Otherwise it's just guess work. Best of luck with it. If you have a cheap tracker mortgage it may put you in a better negotiating position though.
 
Hi all,

Apologies if this has been asked before...

I have a mortgage of about 250k outstanding on my home; good track record with repayments and never in arrears.

Do banks entertain the idea of selling the house for say 200k and setting up a personal loan for the balance of 50k over 15 years or so?

Thanks.

AIB would not let me do this when I asked but I gather banks are dealing with people on a case by case basis so until you ask you won't really know.
 
Do banks entertain the idea of selling the house for say 200k and setting up a personal loan for the balance of 50k over 15 years or so?

Ask your bank in writing if you can do so. What is your reasoning? From the banks point of view you are paying the mortgage so why would they agree to your request.
 
I sold our house in December 2010 and there was a shortfall of €8k or so which is much lower than the figure you are talking about. Shortfall was converted into a loan for the remainder of the mortgage term by PTSB. They wouldn't entertain a shorter term but was extremley happy/lucky to sell. Hope this helps?
 
I sold our house in December 2010 and there was a shortfall of €8k or so which is much lower than the figure you are talking about. Shortfall was converted into a loan for the remainder of the mortgage term by PTSB. They wouldn't entertain a shorter term

What, do you have to pay the €8k over a long period of time? Is it a variable rate term loan?
 
Yes, variable rate loan that matures in 2039. I asked for it to be over a 3 or 5 year period but was told that it has to be for the remainder of mortgage term?
 
Yes, variable rate loan that matures in 2039. I asked for it to be over a 3 or 5 year period but was told that it has to be for the remainder of mortgage term?

Well if it's a variable rate loan I don't see why you can't pay extra amounts each month without penalty to effectively make it a 5 year term loan. €8k over 5 years would be roughly €160 per month.
 
Yes, variable rate loan that matures in 2039. I asked for it to be over a 3 or 5 year period but was told that it has to be for the remainder of mortgage term?

This is very strange, why would the bank want it that way, can you give more details?

Wonder are the bank playing games with mortgage numbers and defaulters and statistics? This mortgage is performing, on track (!) and not in negative equity. The fact that there is no actual property I suppose doesn't matter.
 
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