I want to sell my uk house but it's value is less than all the secured loans on it. My internet research suggests to my horror that my lenders can stop the sale from going ahead. Is this true?
2006-10-08 11:42:26 · 10 answers · asked by trevmun 1 in Business & Finance ➔ Renting & Real Estate
I believe you can, but that would still leave you with some mortgage to pay. Remember, a prospective buyer will only pay what the house is worth, no what you owe on the house.
2006-10-08 13:48:04 · answer #1 · answered by msjuliet2005 4 · 0⤊ 0⤋
Of course you can sell YOUR house but I cannot see the point if you are in such a desperate state with owing money to the lenders. If you are not expecting any return from the sale and you anticipate the "LENDERS" will not let you benefit financially you should perhaps try and arrange to RENT your home from the people concerned. The worse that can happen is eviction because unless you criminally obtained those loans it should benefit all concerned by making such an arrangement - if only in the short term.
2006-10-08 14:23:48 · answer #2 · answered by Whistler R 5 · 0⤊ 0⤋
This is how you might do it in the U.S., I assume it would also work this way in the UK.
Talk to your lender about doing a "Short Sale". The lender agrees to accept some lesser amount than is actually due on the mortgage.
If you have multiple loans, all lenders would have to agree. In the U.S., that is very hard to do.
If you can't get them to agree to a short sale, then you are on the hook for the difference. If you can't pay the difference at closing, the closing can not take place.
2006-10-08 16:41:33 · answer #3 · answered by txrealestateagent 3 · 0⤊ 0⤋
Its yours you can sell it. The question is what about the negative equity. You still have the debt. You may be able to negotiate a lower repayment figure though. This would depend upon your general debt/income/expenses situation. Talk to the lender.
2006-10-08 22:47:45 · answer #4 · answered by Frank M 3 · 0⤊ 0⤋
If you can sell it for what is owed and pay off the notes then your lenders will not care. They will be happy to get their money back. Now, if you are selling it for less than is owed, well, I don't know.
2006-10-08 11:45:10 · answer #5 · answered by Not Laughing w/ U 3 · 0⤊ 0⤋
I dont think that they can. But you will still owe them the difference!!!!
negitive equity should only really apply in a falling market!!!
How have you managed to secure more finance on your property than the property is worth?
If you think that they can stop the sale. speak to a solicitor!!!!!
2006-10-09 05:50:50 · answer #6 · answered by Fox Hunter 4 · 0⤊ 0⤋
No, you have to pay off your lender, so you have to pay them what the mortgage balance is...whether that comes from the sale of your house, or your pocket, is of no concern to them.
2006-10-08 13:01:56 · answer #7 · answered by Anonymous · 0⤊ 0⤋
yeah you can but you would have top pay back what you owe, why not try renting the property out you could make the money for mortgage usually with a tidy profit on top which could help you clear your debts for sale at a later date! consult legal aid or your local citizens advise burro for more help and advise!
2006-10-10 00:58:27 · answer #8 · answered by ultimateplaygirl03 1 · 0⤊ 0⤋
yes you can... but it just means you have to pay the difference to complete the transaction.
2006-10-08 11:44:02 · answer #9 · answered by shevlad2004 2 · 0⤊ 0⤋
chevlad says it all nothing to add
2006-10-09 09:38:42 · answer #10 · answered by srracvuee 7 · 0⤊ 0⤋