we have been informed that there is a problem due to the fact the sellers of the property are in negative equity.This as only come to light now all suveys have been carried out and the sale of our own property is nearly complete.We have been informed by the vendors EA that if they cannot arrange a loan to cover the negative equity the property will be repossessed.Having spent time and money on our hoped to be future home we are wondering where we can go from here?
2007-01-10 04:07:07 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Not your problem to sort out the negative equity.
Get solicitors to talk to each other. Their solicitor should inform mortgage company that purchase by you is immiment. The mortgage company - if informed by solicitor will usually wait a reasonable time as they stand to get more this way. The SELLERS will then need to raise a loan to pay the difference.
It is highly likely that the sellers will not be able to sell so you should be prepared for this. Don't spend any further money on this purchase until this gets sorted out.
2007-01-10 04:42:16 · answer #1 · answered by Biz Guru 5 · 1⤊ 0⤋
Depends on how much negative equity there is!
If the sale of the house goes through and there is enough money to pay off the debt (or an acceptable compromise to the Building Society)it shouldn't affect you!
BUT ask yourself a question - is it in negative equity because of something in the local area that has devalued the property! Surveys are all well and good BUT they do not have to declare something to you if it is beyond a certain distance from the property.
You could infact buy this property and find that permission has been given to build a slaughterhouse just outside the boundary! NICE!
The other thing to consider is that if the property is repossesed, it will go back on the market - sometimes at a reduced asking price for a quick sale! The building society will want to recoup their money!
This also may just be a ploy to get you to up your offer! So be careful!
There is always another property!
2007-01-10 04:20:26 · answer #2 · answered by jamand 7 · 0⤊ 0⤋
Sounds like the present homeowners lost value on their home, and now owe money if they sell the home to you at the agreed price.
I think they would have to raise the sales price to cover the existing liens they owe to their lender to satisfy their debts.
That's pretty much the only way you could resolve this. If you're getting a good deal, you might have to bump up the price to make the current lender happy and get the deal done.
Learn more at http://www.thetruthaboutmortgage.com
2007-01-10 04:17:20 · answer #3 · answered by Todd S 3 · 0⤊ 0⤋
Talk to your solicitor ; it is possible that you will lose the money you have spent on surveys. i'm a bit puzzled why they would be repossessed though as the morgagee is likely to take a bigger loss and take longer to sell than if they let the sale to you go through. Are the vendors trying to get more out of you?
2007-01-10 04:15:57 · answer #4 · answered by D B 6 · 1⤊ 0⤋
If you want this house ask who the sellers mortgage lenders are and would they accept the amount you are offering if the present owners hand the keys in. They woul dbe better letting you buy it than have it go back on the market and wait for someone else to buy it - worth a go
2007-01-10 04:41:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Honestly? You have a snowball's chance in you-know-where of selling that truck for $37K. Folks in the market know that they can get huge discounts on new trucks right now. Why would they want to pay you $37K for a preowned one? I'll be frank (coming from years of financial experience). If your bank is telling you to sell a truck in order to be approved for this house, chances are you can't afford it to begin with. If you need to drop a vehicle payment in order to make a house payment, you need to really re-evaluate your situation.
2016-05-23 04:25:40 · answer #6 · answered by Danielle 4 · 0⤊ 0⤋