Selling house in negative equity

[kkelly77]

I have contacted my mortgage lender for some "advice" on selling my house, which is approximately 40% in negative equity. I have been on an interest only payment for a long time now and my lender is telling me that facility may not be an option anymore.

If this is the case, I will fall deeper and deeper into arrears and selling the house will be my only option.

I would be interested in hearing from people who have been through this process. Were they happy with their decision? How easy/difficult was it to arrange? How did your lender restructure the negative equity? For me, I see this as my only option now. Thanks for your comments.

K.

 

[ClubMan]

Sorry - no direct experience but since you haven't received any replies at all to date just though I'd post...

Is this your home or an investment/rental property? If it's your home then negative equity should only be an issue if you have no option other than to sell up/move. Is that the case here? If it's your home and you can manage at least the interest only (if not also some capital) repayments then I would expect your lender to me more flexible under the MARP guidelines etc. Unless the situation is obviously totally unsustainable of course.

 

[kkelly77]

It is my home, not a rental/investment property. To date, I am on my 4th run of interest only. Not only can I not sustain even the interest payment, but the interest rate is being increased in October, making things even more unsustainable.

 

[Bronte]

It is my home, . Not only can I not sustain even the interest payment, .

Have you applied to social welfare for mortgage supplement, do you know if you are entitled to it?

What has the bank said to you. Which bank is it. Would you be able to sell the house and service the 40% negative equity if it was turned into a mortgage 'loan' at the same rate of interest and same term and also pay rent?

If you want better advice you ought to do the money makeover thread.