Negative Equity Options & Write-off Mortgage Debt
Clients come to us when they’ve exhausted every other option.
For clients in serious negative equity with an interest only mortgage, a debt write down is a real alternative solution. Owners sell their property and borrowers employ Negative Equity UK to negotiate the debt down as much as possible. In return for the write down of their shortfall, the client pays an affordable agreed fee. Such a negotiated settlement allows borrowers to escape their debt and move on with their lives enabling them to make a fresh start. There are very good reasons why a bank would agree to a shortfall sale and writing off large sums of debt.
If banks repossess they’ll be left with an empty property
Repossession isn’t necessarily a good option for the bank. It can be very hard to shift a property which is not occupied. Moreover, repossessed properties are more likely to be vandalised and are a real liability. Plus, their resale value is typically 80% of their actual market value.
They don’t want to go to court.
| How can we help?
If you’ve been struggling for some time to meet your mortgage repayments and you’ve fallen into arrears, there’s a good chance you’ve received letters from your lender or their solicitors warning that they could take you to court, but this isn’t something banks really want to do if they can avoid it, mainly because it costs them money.
Repossession brings additional costs.
Banks are not estate agents, they are lending institutions. Having to sell a property results in further costs for the banks in employing the services of an estate agent to market and sell the property. Repossessing a home means lenders have to pay a third party to sell the property, often at auction for significantly below market value. This means the bank makes a further loss on the sale and suffers a delay in recouping funds because the property may not sell immediately.
There are stringent rules when repossessing a home.
Repossessing a home is not a straightforward process. There is a clear duty of care that the bank must exercise towards you as a borrower and customer. This means that a court judgement could delay the repossession order and restrict the bank from adding their own costs onto what you owe them already if they fail to follow the strict rules. As a result, it is preferable for banks to reach an amicable a settlement which both parties can agree to. This is where Negative Equity UK can help. Our negotiators have successfully settled numerous cases of negative equity in a mutually agreeable way. This is a win/win agreement where borrowers get released from a contract they can no longer fulfil, and lenders write off an average of £75,800 in debt for each client.
How is home equity calculated?
Home equity is calculated by subtracting the amount you still owe on your mortgage from the current market value of your home.
Can you have negative equity?
Yes. With standard loans, your home equity will increase over time. With negative-amortizing loans — a loan with monthly payments less than the interest rates — your equity decreases over time as your owed balance increases.
| Success stories
In 2017 we have settled over 281 cases, which represents 281 real people who can move on and rebuild their lives without a bankruptcy judgement. We negotiate an affordable settlement for every client with their lender. The lender is happy not to have to move to a repossession order and the borrower is happy they no longer have huge debts hanging over them. All sides benefit.
So if you find yourself in negative equity and out of options, take the first step to get out of your negative equity property debt and contact our Negative Equity UK advisers today. We offer a free, no obligation consultation so you’ve got absolutely nothing to lose and everything to gain. Let us help you get your finances back on track.
What our former clients say
Our expert advisers have assisted many families to get their life back on track after being in the negative equity/mortgage debt trap. It is our genuine belief that we can provide a really positive outcome that motivates us to help people out of their negative equity debt prison. Our 99% positive review rating on reviews.co.uk is testament to that as 99% of our customers say that they would definitely recommend Negative Equity UK to people in the same position. A recent review from one of our customers states:
“I bought a property at the height of the property boom. When the property was sold I was left with a shortfall of nearly 100k . My case was passed to Lesley and she conducted negotiations with the lender on my behalf. Lesley managed to get 83% of the debt written off! Lesley was always available to answer any questions and progressed my case in a timely manner. At the start of the process I was extremely sceptical but now I wish I had approached Negative Equity UK much sooner.”