I owe more than the house is worth. What happens if I sell?
I own a property with my ex husband, i have lived in it alone and paid the mortgage for the last 3 years. I have put the house on the market on a number of occasions with no luck.
However due to market valuation is low, my question is i have a mortgage and a secured loan on the home, which i pay both, when/ if the house sells will i will not make enough to cover both,
The question is when the completion is completed, i guess mortgage will be priority, then will it be the fees eg agent fees or the secured loan which will be the next priority?
You should take legal advice.
In our experience, your house sale will fail because your solicitor will reconcile the figures and be able to calculate the proceeds will not cover all that needs to be paid off. Your solicitor will not allow the sale to proceed until you add the balancing figure to their account.
The secured loan will be the priority but the question is academic. If the sale price is 100k, and you have a mortgage of 80k and loan of 20k and estate agents fees of 4k (examples only) the solicitor will ask you to add 4k in cash to their account so the sale can proceed.
If you are unable to raise the balancing figure the most likely course of action is to ask someone (your solicitor for example) to negotiate with the loan and mortgage companies to see if either will reduce their outstanding balance to the sale can proceed.
However, if you know you can't afford to sell the figures should be negotiated before you find a buyer otherwise you risk incurring fees for a sale that collapses...
You should speak to your solicitor about your situation or speak to an independent third party such as Shelter.