Negative Equity – How to Deal with it
This is a geographic phenomenon in the UK, with the South of England usually exempt from it. The crash of 2008 saw the market plummet and ridiculous lending saddled people with negative equity. At Bell & Company, we continue to operate with clients here in NI and ROI.
We have helped hundreds of people alleviate negative equity and extended this across Europe, especially in Spain and Cyprus under our EU Property Solutions brand.
If faced with Negative Equity on a property, you need to quickly assess your asset and liability situation. Because if the negative equity is crystallised, the lender will request the repayment of any shortfall.
Sometimes the negative equity comes in the form of a claim by a lender if the property was repossessed and then ultimately sold.
Any settlement achieved from a negative equity situation stems from:
- The borrowers net asset position,
- Their income,
- Conduct during the loan, and
- The Lender’s attitude to settling.
Obviously, the lender’s attitude is key but so is the presentation of the case and knowledge of that lender. At Bell & Company that is what we do.