Brendan,
I have 21 years left on an interest only .7% over ecb on 960k mortgage with BOS.payments up to date but havnt a hope of paying this off.I have 4 investment properties all on trackers worth 100k less than is owed on each,none of these mortgages are with BOS.My house is worth about 850k now and would like to do a deal with the bank whereby if house sold for 850k i could walk away with 250-300k,about a 35% write off,i would like your thoughts on this.
Certus are certainly doing deals. However, I don't see your proposal as being a runner for any institution. If you were to approach Certus and agree to sell the property on the basis of net proceeds as a full & final settlement of the 960K mortgage they may agree. The prospect of them accepting 550/600K on this debt is unlikely. However, if you have a 21 year interest only rate with them you are in a strong negotiating position. Who knows??
Its not important who makes the approach. However any offer needs to be reasonably realistic. At .7% over ECB this mortgage has a high level of annual loss to the Bank over their cost of funds. Do the maths over the term using an estimated loan price to the Bank of corca 2% (difficult to establish what BoS is paying for funds) and then use a net present value to establish this loss in current value. This will give you an idea of what kind of deal is worth their while accepting.
at 2% cost for bank funds 960 over 21 years is a loss of 260k to the bank over the next 21 years and they have probably already lost 50-60k on it over the last 5-6 years.I have been told that Certus will accept 70% settlements on people like me on trackers of 1% or less.
Yes, I've seen some dramatic write-offs by Certus. They are even approaching good clients meeting their monthly payments in full & offering deals to exit the relationship. Best of luck. Send me on my commission
Wish they would knock on my(there) door,your commission.....i would only too delighted to if i get this a resolution....thanks and any advice you can give me i would appreciate it.