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Sellling house for less than mortgage?

  • 01-04-2013 5:43pm
    #1
    mrsmurph
    Registered Users, Registered Users 2 Posts: 11 ✭


    Firstly am new to this site so hope I am posting in the right place,

    I bought my house about 5 year ago on my own before I met my husband, we are thinking of moving back to his area and selling my house but what I want to know is how the mortgage will work, for talk sake I bought my house for €150,000 but it is now been priced at €100,000 does the remained of my mortgage be like a loan I got or what way will it work?? do I just pay back the €50,000 or do I keep the money from the sale and still pay back the mortgage like I am now??

    any info would be really helpful
    thank you :)


Comments

  • #2
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,243 Mod ✭✭✭✭godtabh


    Ask your bank. They may not let you sell


  • #3
    mrsmurph
    Registered Users, Registered Users 2 Posts: 11 ✭mrsmurph


    really??? why?


  • #4
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    mrsmurph wrote: »
    really??? why?

    Because at the moment the mortgage is a secured loan. By allowing you pay off the excess after sale it becomes an unsecured loan. A lot will depend on your salary, whether you are on a tracker etc.

    The best deal would be sell the house for €100k, give that to the bank, convert the 50k excess to a personal loan to be paid off over a long period at a low interest rate.


  • #5
    mrsmurph
    Registered Users, Registered Users 2 Posts: 11 ✭mrsmurph


    ok I see, best talk to the bank so


  • #6
    Wendolene
    Registered Users, Registered Users 2 Posts: 176 ✭✭Wendolene


    Hi OP,

    As StillWaters said, your mortgage is a secured loan. That means that your lender gave you the mortgage based on a legal commitment by you in the mortgage agreement to accept an encumbrance or limitation on the use and disposal of the property.

    That means that your lender won't want you selling your property for less than is currently outstanding on your mortgage, because that would diminish the likelihood that they'll get their money back.

    They may come to some arrangement with you to facilitate some sort of ongoing repayment of any outstanding amount, if you approach them and explain your intentions clearly ... but don't assume that they will, and they may just dig their heels in and refuse to entertain the notion.

    Your mortgage agreement was a promise by you that they'll get their money back. They'll want to hold you to that promise.


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