Negative Equity - what could the bank do?

choicer

After months of negotiating with the bank it appears they are insisting on the full mortgage repayments be met, but we cannot afford them.

After carefully reviewing all options we are coming to the decision that we may need to sell our home and move in to a rental property.

Our home is in negative equity so we're wondering what the bank will do or insist on with regards to the negative equity before approving any sale? It's really difficult to find any information on this.

Anyone heard or seen anything?

Eldarion

They can prevent the sale if they feel it's in their best interest to do so. Talk to them about selling and come to an agreement on the repayment plans for the remaining debt you owe them after the sale of the house has been concluded.

Remember if you fall further and further into arrears you will accrue even more interest and it will also allow the bank to seize the house and sell it on their own terms.

Sorry for your current plight but I think it's a good sign and in everyone's best interest that the banks are no long playing ball with this "debt negotiation" carry on.

Sleepy

If you can't afford the mortgage, are you sure you'll be able to afford rent?

Not sure what things are like in Tipperary at the moment but up in Dublin, most rents would be higher than mortgage repayments right now...