question category: Other Debt Questions

I have a secured loan on my flat which has negative equity I need to sell

Submitted on: 1st Apr 2010 by Non-Member | Total Answers: 1

My flat has negative equity but I need to sell but I also have a secured loan on it can I sell the flat and how

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Re: I have a secured loan on my flat which has negative ...

You do not advise why you need to sell your flat, but if you sell your flat for less than you owe then you will still need to repay the amount outstanding to the lender. It will be an unsecured debt and you will need to ensure a way to repay it.

If you are selling because you are struggling with other unsecured debts, any shortfall once your flat has sold (after you have paid off the mortgage and secured loan) could be included with your other unsecured debts. You could then seek advice about entering these debts into a solution, for example a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA) and all the creditors will then be contacted.

I would contact your mortgage and loan provider first and advise them you are looking to sell, they may be able to give you other advice. If you are struggling to pay due to a loss of income you may find assistance is available.

Submitted on: 21st Apr 2010 by Justine Member

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