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First time buyer purchasing from some one in negative equity

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  • 31-03-2011 11:45am
    #1
    hairynipple
    Closed Accounts Posts: 110 ✭✭


    Hi,

    I was wondering if there is anyone that has had to go through with buying a home from someone in negative equity. I viewed this house last Sept 2010 and put an offer in Oct 2010. Only got news 2 weeks ago that the vendors bank has to get a solicitor to release the property to me therefore (vendors bank will have no interest in the property after I hand over the cheque and move in). I got news today that the vendor can't afford to pay for the solicitor. this is extremely frustrating for us and would like to know if I should pull out or not. (this is the only house in the area that I would consider buying and it was a great price €138,000 3 bed semi Detatched, fully furnished)

    I'm sick of dealing with solicitor and estate agent, just want someone advice that might have went through this before

    Thanks


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    #2
    Cookie_Monster
    Registered Users Posts: 24,476 ✭✭✭✭Cookie_Monster


    The problem is this:

    Seller has mortgage of 300k (say)
    Selling house to you for 250k

    shortfall of 50k in mortgage due to negative equity, so I highly doubt the bank will allow the sale as they will lose on the mortgage...

    Do you know the position of the seller bank re the mortgage and releasing the deeds when there will be a shortfall?


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    #3
    hairynipple
    Closed Accounts Posts: 110 ✭✭hairynipple


    Thanks

    No haven't a clue, i'm thinking of calling into the house and confronting yer man see what the chances are of him clearing things up with the bank. Problem is that yer man is split up with his partner too which prob complicates things even more


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    #4
    coylemj
    Registered Users Posts: 25,359 ✭✭✭✭coylemj


    If they were married or if her name is on the deeds of the house then she will need to co-operate in the sale by signing documents but if the split was messy there is a risk that she could block the sale out of spite so it may be time to assess if you should just walk away.

    She isn't going to get a cent if the house is sold so unless you wave a few hundred euro under her nose she might decide to do nothing and screw things up for everyone.


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