2 Mortgages with PTSB, 1 in arrears

[kroy]

Hi,

Just looking for a little advice or guidance if possible.

We have two mortgages with PTSB, our home & an apartment which was bought to be my pension (I was self employed at the time).

Fast forward a number of years and the apartment is in arrears of about €25k. The mortgage is interest only €1450 PM, but we only receive €900 in rent.

All the rent received goes toward the mortgage. We exhausted our savings trying to keep up in the hoes that things would get better, but they didn't & we slid into arrears. We're also in arrears to the management company of about €6k & I have a credit card debt of €4k (things like buying food & paying bills when there was no income coming in).

My business failed & things went into a general decline all round & we now find our selves like this.

The house mortgage is up to date because I was brought up to believe in protecting the family home & there's three small kids who need a roof over their heads. We have one income from my wife (thankfully), which pays the mortgage, bills, groceries & new taxes. Sometimes we find ourselves in deficit of a couple of hundred by the end of the month, but we struggle out of it. We've cut everything to the bone & live as comfortably as we can. I'll be honest & say that on occasion I haven't eaten so that there's enough food there for my wife & the kids.

The PTSB are on at us about going on interest only on the house so that we can afford to pay more to the interest only mortgage. To my mind that's a bad idea. We've already got one in distress, if we do that we're going to end up with two.

I've been considering bankruptcy/insolvency, We can just barely scrape by as things are. We can manage. I pay the utilities a small amount every week & it's paid off by the time the bill is due, the groceries are the bare minimum, the taxes are accounted for & the mortgage gets paid by the week so that we don't get hit with overdraft charges at the end of the month. If we were able to get the bank to take the apartment back & claim bankruptcy, we'd have a chance in a couple of years to rebuild our lives, but if we have to lose the family home, then we're screwed.

I need to know can we keep the family home if we go down that route & also do both my wife & I have to do it ?

 

[vandriver]

Whose name is the apartment's mortgage in?
Some detail of the 2 properties(value,amt outstanding,repayment,interest rate).
Income details.

 

[Cantalia]

The official assignee for our new Irish bankruptcy has said that efforts would be made to keep the family home for example the wife could buy if from the official assignee but of course that only works if only the husband is on the mortgage. It depends whose name is on both mortgages. There is much written about this on this site. You will have to fill ut the case study questionnaire to get construction suggestions. There is great help on this site.
Please post the full details.

 

[kroy]

Thanks for the replies folks. Both mortgages are in both names unfortunately.

The house has about €210k left on it, payments are about €1200 a month, we're covering that, it's tough, but we're doing it. The apartment was an original loan of €290k, however it's in arrears of €23k & the arrears are gaining interest so we now owe €320k on that.

This morning however we got a letter off them saying they want us to sell it & it would be better for us if we did. We'd have to pay back whatever was above the realised value of it (there's a similar one in the same block with an asking price of €140k). Even if that full amount was realised, there's be another €180k to be paid back.

We can't afford the difference in the mortgage now, there's no way at all we'd be able to afford the extra on top of that.

 

[Gerry Canning]

Kroy;

As per another thread give PIP a ring . Suggest phone Ryan Stewart on 085888531,say you spoke with me. I have found Ryan helpul.
He is busy so please re-try him if need be.