Are you questioning if you are in Negative Equity and don’t fully understand the meaning? Not to worry – this is completely understandable.
In less complex terms: Negative Equity occurs when the current loan or mortgage balance secured on a property is higher than the current market value of the property.
An example of this would be when a borrower’s current mortgage balance could be €150,000. However, a recent comparable property may have sold for €100,000. This borrower is in Negative Equity and therefore faces a shortfall of €50,000!
EU Property Solutions know those who purchased in Spain and across Europe at the height of an inflated market pre-2008 taking on a huge amount of debt, which later has left majority in financial difficulty. These plummeting values since 2008 have left many facing the very real problem of Negative Equity on foreign property.
Many who own a property in this situation feel trapped and unable to move on, being dubbed “mortgage prisoners”.
Our main focus for wanting to assist borrowers who are in Negative Equity is solely due to the threat of crippling debt left after a sale. This may be enough to prevent anyone considering a sale or move.
So many borrowers feel the only option is to wait until house prices rise. However, the market may never return to the prices they once were. Couple this with having to keep paying the mortgage every month leaves the owner in a predicament, to say the least.
EU Property Solutions know there are options in place for borrowers in Negative Equity. We work with a variety of lenders across Europe and can tailor our services based on your circumstances and lender. You are not a mortgage prisoner and we can find a way out of your predicament. Call EU Property Solutions today on 0330 124 1230.