So in short ...

[Road Pest]

To the wise PH (and the not so),

If I was to sell a house in negative equity, what would happen to the money that was owed to the mortgage lender upon such a sale?

Thanks in advance

[Road Pest]

Thanks, what would the typical conditions of such a debt be?

What a st time to be faced with this...

[Road Pest]

scotal said:

I dont think they'll release you from the mortgage, i.e you couldn't sell the house.

Thanks Scotal, that's what I thought. However I have been told if the sale was forced it would go to court and end in a reposession order, is that correct? If so has anyone had any experience with such a scenario.

[Road Pest]

Yep, it's matrimonial. I'm pretty sure that what I know already is correct, just needed to put the feelers out there to see if anyone had practical knowledge.

[Road Pest]

scotal said:

Road Pest said:

Yep, it's matrimonial. I'm pretty sure that what I know already is correct, just needed to put the feelers out there to see if anyone had practical knowledge.

If its you, I'm sorry to hear that.


Forcing a sale at the moment can only be through spite if the house is in neg equity.
Better that if one of the parties is in a postion to take on the whole mortgage blaance, they do.

She's ignorant to anything financial and of course won't take my word for it at the moment. Unfortunately due to the state of the economy neither one of us can take the mortgage on on our own. I'm hopping it is ignorance more than spite and her solicitor doesn't do a job on her.

ETA she wants to move abroad which is why the sale would be her ideal move

Edited by Road Pest on Wednesday 22 April 10:20

[Road Pest]

NDA said:

I note your profile says 'Manager (Finance)'.

Why are you having to sell?

Unfortunately even "we" have problems sometimes.

[Road Pest]

NDA said:

Road Pest said:

NDA said:

I note your profile says 'Manager (Finance)'.

Why are you having to sell?

Unfortunately even "we" have problems sometimes.

I wasn't having a go, just curious if your financial background could assist.

If you're in negative equity you're stuck, unless you walk out and continue paying your share of the mortgage. If she walks out and defaults then you're up the creek.

Awful situation.

Sorry, didn't mean to imply you were. She has these ideas that the lender will just right it off and let he walk away with a nominal payment, I think. I've told her that it will be at least two years until we are in a position to sell.

[Road Pest]

Grey Ghost said:

If the house is in joint names then surely she is responsible for 50% of the negative equity? Still not an ideal situation but if you could raise your 50% share of the negative equity and pay this off if you could sell it then would she be left with a financial problem to be solved on her own and your credit rating undamaged?

If she does not understand the finance implications of selling a house with negative equity perhaps a simple explanation of her "share" of the problem will ensure she understands she just cannot walk away.

Sorry to hear of your troubles but don't let personal feelings come into this financial arguement.

Thanks, we've already gone through this, but she sees that a solicitor is better placed to tell her what is what rather than me, which is fair enough. I hope I am not coming across over emotional, these things happen.

[Road Pest]

Grey Ghost said:

Road Pest said:

Grey Ghost said:

If the house is in joint names then surely she is responsible for 50% of the negative equity? Still not an ideal situation but if you could raise your 50% share of the negative equity and pay this off if you could sell it then would she be left with a financial problem to be solved on her own and your credit rating undamaged?

If she does not understand the finance implications of selling a house with negative equity perhaps a simple explanation of her "share" of the problem will ensure she understands she just cannot walk away.

Sorry to hear of your troubles but don't let personal feelings come into this financial arguement.

Thanks, we've already gone through this, but she sees that a solicitor is better placed to tell her what is what rather than me, which is fair enough. I hope I am not coming across over emotional, these things happen.

You aren't showing emotion on here at all, just asking for advice....which is brave to be honest. Had the same sort of issue a few years ago and had what turned into a quite short, sharp exchange followed by a written example of what would happen if a house in joint names need to be sold with negative equity. Neither my mate or his former wife had ever seen me lose my temper before but it got the message into her amazingly thick head.

"Yes you fkwit bimbo, of course the lender is going to write off £40,000 just because you have decided to shag some bloke from the gym and now want your freedom back to shag all his mates as well, probably at the same time. You have responsibilities and debts to service that you cannot walk away from what is so fking difficult for you to understand?".... was about the jist of it

Yeah, It went like this for me, "what exactly do you think will happen with the 50k shortfall?" her words were "I dunno."

[Road Pest]

scotal said:

Road Pest said:

Grey Ghost said:

If the house is in joint names then surely she is responsible for 50% of the negative equity? Still not an ideal situation but if you could raise your 50% share of the negative equity and pay this off if you could sell it then would she be left with a financial problem to be solved on her own and your credit rating undamaged?

If she does not understand the finance implications of selling a house with negative equity perhaps a simple explanation of her "share" of the problem will ensure she understands she just cannot walk away.

Sorry to hear of your troubles but don't let personal feelings come into this financial arguement.

Thanks, we've already gone through this, but she sees that a solicitor is better placed to tell her what is what rather than me, which is fair enough. I hope I am not coming across over emotional, these things happen.

She could always speak directly to your lender (not maybe the brightest of ideas) or a broker. I'll happily run through things with her, but seeing as it would be you giving her my contact detaisl I'm assuming she wouldn't believe me.

Thanks for the offer but I think that she needs to do this on her own. Somehow I think we'll be here for a couple of years before we can move, am just concerned about what her solicitor will say to do.

[Road Pest]

Marcellus said:

in the last property crash (or was it the one before) my then wife and I handed the keys back...

My now ex mother in law thought she was some financial advising wizz and helped us plan how we could hand the keys back and disappear from the building society.... we thought we were being so smart and spent a couple of months planning our "disappearance" and then did it... moved and then dropped the keys through the building societies letter box with a letter pleading and apologising.

about 5 years later I had a strange call at work, a few weeks after that we had a knock on the door and a month later were sued by the building society for the £20k negative equity, interest, costs etc etc etc............ believe me they don't forget who owes them what and make sure they get their cash!!

Yep I have no plans of walking away, just hope, the now, ex doesn't.

[Road Pest]

Why is this in Homes, Gardens and DIY ???
Conversation last night hopefully got through and we'll keep the house off the market, thanks for all your input guys.

[Road Pest]

scotal said:

Road Pest said:

Why is this in Homes, Gardens and DIY ???
Conversation last night hopefully got through and we'll keep the house off the market, thanks for all your input guys.

If and when she goes abroad are you satisifed she will stay in contact?
Paying the debt and selling the house are both going to be a nightmare is your ex decides to drop out of sight.

She has had the opportunity already to drop out. I believe she won't just drop out, it will be either sell the house, if at all possible, or stay with the commitment for the next couple of years and hopefully sell breaking even.