When you realise your property value is less than your outstanding mortgage balance, selling your house in negative equity might be your initial reaction to get rid of the problem and start over again.
We get asked all the time – can I sell my house in negative equity?
The problem arises when you haven’t got enough funds out of your house sale to pay off all of your mortgage balance.
It is in fact illegal to put your house up for sale when you know your property is in negative equity. When a property has a mortgage or secured loan on it, this is security for the lender and the property cannot be sold without their permission.
If there is very little difference between the value and mortgage, you could discuss selling the house with your mortgage provider first, to see 8f they will give you permission to sell. Any shortfall realised will have to be paid by you.
There Is A Better Way Of Selling A House In Negative Equity
If you have a large amount of negative equity, you will need to explore other more suitable options.
That is where we come in!
Want to know your options? Want to get released from the burden when there seems to be no solutions?
Get in touch for a completely free no obligation chat regarding your own specific financial circumstances now.
See also legally writing off negative equity.