Hi j4m11e and welcome.

I'm not entirely sure what your question is. Sorry if I'm missing something obvious.

Are you wondering how you could deal with a shortfall created by the sale of this property? Are you asking whether such a shortfall could become a creditor in a trust deed later?

You would be unable to sell the property unless you either received an offer to pay all secured borrowings or you received the consent of the mortgage company etc. it is likely they will pursue you for the shortfall.

In the event that you were in a trust deed, the shortfall would be included as a debt.

Mark

Who is the lender?

Some lenders are keen to offload loans and will accept a lower figure if you have a firm offer.

I think, if that's not possible, you might need to make decisions on the timing of selling it. What's the best comparables for sales of a similar property you can find, sold in the last 3-6 months in the same area / condition?

Have you thought about letting it if there is no equity to take forward to a new property?

Hi, thanks for the replys.

Currently the mortgage is with the nation wide bank. I have no loands or outstanding debt and have made every payment thats been asked for.

My main question is i think, do i need to go into the bank and ask there permission to sell the property as a shortfall and below what is due on the mortgage ?
And would it be the bank that set up some way or repaying this shortfall ? like transfering the loss or say 15k onto a personal unsecured loan ? I have nos history or miss payments and dont even own a credit card or have a mobile phone contract. i just live from what i earn and if i have it in my pockect then thats all i spend.

I have been told to wait and the property market will pick up and it will be fine but how many years do you wait and then what if it doent get better for 5 or more years. thats a long time to be waiting. And in 7 years time the builder will be knocking on the door wanting there 25% back anyway which there is no means of paying. and i would be unable to remortgage as the proprty is in negative equity.

Thanks jamie

Hi jaimie

In the circumstances, the only option is to speak with the Nationwide and try to get their agreement for you to market the property on the basis that they will convert any shortfall to a loan. Please also ensure that you get their agreement in writing that the selling costs will be met from the sale price.

Mark