PTSB branch meeting 2 mortgages advice please!

Hi all please bear with me while I get this down, we've a meeting with branch manager tomorrow morning. I've been reading through posts here the last month or more gathering bits of information.

Ok we have out home place and then we purchased an investment property in 2005 as my husband didn't have a pension and thought this would be the way forward while it was rented it wasn't too bad but coming up to 2 yrs ago the tenant committed suicide in the property and we've been unable let it since it's a small village and everyone know's every one. My husband was put on a 3 day week so we're under pressure we've had it interest only and have been under sever pressure everything else is suffering.

We can manage the home place it's just the investment oh and of course we're SVR home 5.19% and investment 5.99%. As the property has been idol we've had people to look but then they find the history and won't let also have been talking with estate agent and there are so many properties better than ours out there.

While we appreciate it we're to the wall need to invest in the property or sell estate agent has basically told us it won't sell, so we thought if we spoke with the manager wold they give us a break on the investment property to use payments to make improvements on the house doors window's etc, if we just stop paying what are our options?

We're just ordinary Joe soaps with 4 young children, have €16 left for this week we use every last cent for the mortgages while all else suffers, all other bills are mounting up €515 esb and TV licence has just come in.

Apologies for the long winded post but would appreciate any and all advice.

Are both properties near each other ? Would moving into the investment property and letting your original home be an option ?

Unfortunately no investment is only a small 2 bed and we've 4 kids wouldn't be big enough also further away from the schools.

We'd be hoping if at all possible to get a few months off enough just to invest a little to get it in a position to let again. Unfortunately we've no disposable income at all to try to save up and get work done.

Your'e options are limited, but you do need to address your financial position.
I assume that the investment property is in negative equity & as you say, you can currently neither sell nor let it. Loan amount nor mortgage not stated on your post. I assume that you are currently meeting the full repayments.
You also have a home loan. I assume that you are currently meeting the full mortgage payments on this loan.
Income & expenditure details not advised. I again assume that you have made all of the available cutbacks in expenditure and you are still unable to meet all of the household bills.
Based on this summation, you clearly can't continue to pay both mortgages.
Before meeting the Bank, complete a brief household budget. Include all income/expenditure before loan repayments. Make sure you address all household expenditure, including irregular payments such as car tax, insurance etc. Divide annual payments by 12 to give approximate monthly outlay. Also include some small element of social expenditure. I.e. Make sure that you give yourself enough to meet all of your regular outlay.
The balance is what is available to make loan repayments. Deal with the Bank on this basis and state that you will continue to fully co-operate in selling/leasing the investment property. Don't be bullied into paying more than you can afford. You are entitled to use the MARP agreement in terms of repayments on your HL. The bottom line is that you can only pay so much, and provided that you are open and honest with the Bank, there is little that they can do to force you to pay more.

Ashejhm said:

while it was rented it wasn't too bad but coming up to 2 yrs ago the tenant committed suicide in the property and we've been unable let it since it's a small village and everyone know's every one.

Click to expand...

Have you approached the Council and looked about getting them to take it on the RAS scheme?

if the answer to the above is yes and the council declined then forget about renting it,2 years carrying such a property is killing you.

You say an e/a has said it wont sell??everything will sell if priced well.

You are going to have to seriously undercut the price other properties in the area are selling for and get shot of it,look to seeing if its possible to roll the shortfall on to your PPR mortgage and restructure the term?,you don't post figures so not sure if this is possible but it is probably your only real option given that no one will rent it given its history.

Brendan apologies yes negative equity we have sat down with the bank about 3 mths ago and got a deal for IO on investment for 2 yrs but it's still crippling us we've done all the budgeting with them nothing has changed since only less funds coming all the children's allowance each month goes into the mortgage's zero left for anything.

We'll manage the HL tightly it's the investment and we're not trying to shirk this, this is our mess not trying to avoid it we've at every point contacted the bank to sit and discuss our options just feed back from estate agent and people looking at investment is negative we need to do some work to get it tidied up 2 yrs idol has left it rough windows need replacing.

€112,935 balance due estate agent said we'd be lucky to get €65-€70 so still a short fall if it was sold.

We would be hoping to turn it around get someone in and move back to full payments, obviously the 5.99% IP and 5.19% on home aren't helping we've never once gone into arrears but as I've mentioned all other bills are mounting up.

Apologies Knuttel only seeing your reply now yes we've been in touch with council initially we're too far down in the County they've no need for properties in this area.

OK. Your priority is to meet family living expenses. My advice above still applies. Your proposal to the Bank is based on paying them available surplus income. In order to assess that yourselves and inform the Bank you need to complete a household budget. Probably as well to download a FRS form and fill that in also.

Thanks Brendan appreciate it, everyone appreciate your feedback we just want to be prepared going in and know what our options are if any.

Worst case would be to take it off direct debit for 4 months and use the €600 approx pm IO payment to reinvest in the property new floors and new windows then start repayments hopefully having let it and pay additional off the few months arrears we dread the thought of arrears and have done out living best to avoid it but unfortunately something has to give.

Thanks.