negotiation negative equity following sale

R

Rsjm

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Hi,

We have recently sold our house with permission on kbc.

There is 100k of negative equity and it is unsecured. We have no other assets and are likely to rent for the foreseeable future.

Does anyone have any advice on how to negotiate the residual debt? Should we look for a write off? Offer to pay minimal amounts? Or are we likely to be forced into full repayments ?

All help welcome
 
"We have recently sold our house with permission on kbc. "

Have you actually completed the sale of the house? Or just gone "Sale Agreed"?

I suspect you are just at Sale Agreed stage. Your solicitor will not be able to complete the sale, and you should not sign Contracts, until you have reached agreement with KBC on the residual debt.

At best, they will write off the debt but that is unlikely. I expect you will have to make repayments at some level.

Perhaps you should be considering bankruptcy?

mf
 
Never agree to finalise a sale closure without agreement on the residual debt being reached. Until you sign the sale agreement you are in a position of strength. Once the sale is closed any co-operation is forgotten about and you are just another unsecured borrower. Net worth and ability to pay are the key issues that dictate any negotiation with banks in respect of these type of debts. In the case of my own bank we will always require full completion of a statement of income and net worth which must be sworn before a Commissioner for Oaths before approving any final settlement agreement. If the information is later found to be incorrect this will render the agreement null and void!
 
44brendan said:
Never agree to finalise a sale closure without agreement on the residual debt being reached. Until you sign the sale agreement you are in a position of strength. Once the sale is closed any co-operation is forgotten about and you are just another unsecured borrower. Net worth and ability to pay are the key issues that dictate any negotiation with banks in respect of these type of debts. In the case of my own bank we will always require full completion of a statement of income and net worth which must be sworn before a Commissioner for Oaths before approving any final settlement agreement. If the information is later found to be incorrect this will render the agreement null and void!
Click to expand...
44 Brendans advice is very ,very good.
Do not assume Mr Bank will treat you well after sale.
 
Hi Brendan44
Thank you for your useful postings in this forum.
In a situation where after a forced sale there is a shortfall and two parties jointly/severally owe €300k.
One party can get lump sum from family and suggests an arrangement to bank whereby she agrees to pay back "her share" - €150k plus interest - over next 10 years.
However if bank insists on retaining the legal right to hold her liable for full amount, she has no choice but to go bankrupt. This is not meant as a“threat". It's simply that she can't take the chance that she will end up on the hook for the full amount should the other party die/abscond etc.
(This is turn will force other party into bankruptcy as they cannot afford full amount either)

Can a bank legally come to such an arrangement?
Are they likely to?
 
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