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Mortgage arrears and insufficient equity: we would like to sell to an investment buyer at a discount but can the mortgage company stop us selling?
We have a mortgage for £75,000 which includes an unsecured loan of £11,000. We also have a secured loan for £22,000 on the property. We are in financial difficulty and are trying to sell the house. It has been on the market for three months for £110,000 but we haven't had one viewer yet. We have an investment buyer willing to offer us £90.000 which we would like to accept because we are getting further and further into arrears. However, if we accept this there will be a shortfall which we will have to pay off monthly after the sale. My question is: can either the mortgage company or the loan company stop us selling the house as we will not have sufficient to clear the debts completely?
No they cannot but when selling the property you have to redeem any secured loans in full.
There are two possibilities ;
1. The investment company pays you more leaving you to repay them over a period of time.
2. You take an unsecured loan for the shortfall.
We can ask a financial adviser to source a loan for you at no cost if you wish.
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