family home cross secured, now in debt on investment mortgage, what happns next?

D

day

Guest
We bought an apt in 2007 as an investment, the apt was 420 thousand and we had 100 thousand deposit and cross secured it with our family home. Since then our circumstances have changed aswell as the rental market and after stuggling to pay both mortgages for the last year we our now in arrears on the investment one since the beginning of the year. Our concern is that if we cannot resolve this with the bank ourselves, the courts would force the sale of the family home aswell as the apt to pay the mortgage, the family home has about 100k equity and the apt prob 150k neg equity. Has any one any advice or being in a similiar situation?
Thanks...
 
You are a long way away from losing your family home so don't panic. Have you talked to the lender about restructuring the investment mortgage e.g. go interest only, extend the term etc?
 
Both mortgages on interest only, have talked to the bank several times over the last year re our situation and what options we have...I asked why we are being charged a higher investment interest rate even though our contract states clearly that the interest rate applicible will be their homeloan rate (Have gone to ombudsman on this..waiting an outcome) I have asked about selling apt and rolling monies outstanding into our family home tracker mortgage, they said no to that as it would have to be a separate mortgage on the existing rate...they say nothing they can do as mortgage is interest only and their suggestion being borrow money off credit union to pay mortgage...
 
Is your credit rating not affected by missing a mortgage payment ,would this not prevent you from geting a CU loan.Does any one know how long is a credit record affected for after missing a repayment
 
day said:
they say nothing they can do as mortgage is interest only and their suggestion being borrow money off credit union to pay mortgage...
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As Sunny said unreal. No way will they write you a letter suggesting this. You should only correspond with them in writing from now on. You need to deal with this and be proactive on writing to them immediately. Otherwise it will only get worse. You are a long way from losing the family home but you could. Your best bet is to get them to allow you to sell at a loss and add the negative equity to your home or let you pay it off as a loan at the mortgage interest rate you have now.
 
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