So here's the scenario, posted on behalf of my bro. He is renting a place to live himself but has two places rented out. The first, let's call it A, has small mortgage of maybe €60000. Second, let's call it B, has a big mortgage of over €200000 and is in neg equity. Up to recently, he was paying both no prob, but B was set up as an interest only repayment and he thought there were five to ten years interest only left on that still but apparently not, and now the bank are looking for over €1000 a month on B, which bro can't manage. Bank is reviewing it but taking their time (there've been probs with A in regards to getting good tenants, despite major rent drops, and lots of damage having to be fixed after each tenancy so even though mortgage low, it's eating up the cash too).
ok so the question is, in theory, if he tries to sell A) and has money over after clearing the mortgage on it, does the bank have a hold on/claim over that money in relation to mortgage B), say if it was a case he went into arrears for a month or so pending the re-negotiation of B) with the bank?
Hope it's not been confusing. Any help/comments welcome.
ok so the question is, in theory, if he tries to sell A) and has money over after clearing the mortgage on it, does the bank have a hold on/claim over that money in relation to mortgage B), say if it was a case he went into arrears for a month or so pending the re-negotiation of B) with the bank?
Hope it's not been confusing. Any help/comments welcome.