My 60 month interest only period for 2 midland UK flats I bought is due to expire in 6 months. The problem is the rent only covers the interest and I cannot pay the capital from my own resources. I would love if the bank would roll on my interest only at Libor plus a margin of 1.45% for another three years.
Beacuse I am a fool I followed the advice of a former high roller (I call them flats now, he used to call them apartments) and bought these for 165K. Using net income and 15% vacancy rate and 8% yield, I think they are worth 80k. From what I hear they are impossible to sell, even though occupancy is 100% so far.
I assume that when the repayments default the bank will move for control, sell the flats off cheap, and come after me for the balance. I have one other property in Ireland outside of my family home and I am trying to sell that to cover the UK losses.
Ultimately they will get a judgement and put a judgement mortgage on my home. That does not really concern me because I have a lot of experience of securing judgements for bad debt in courts and have never been paid a penny. People realise they cannot and will not borrow again so their credit rating is not a concern to them and I fell I am joining their ranks having tried to invest my way to a retirement fund and something for the kids. But I have failed badly.
Ironically, I have never spoken or corresponded with the bank since I drew down the 165K almost 5 yaers ago. They probably think they have a performing loan.
Any advice on handling this mess would be appreciated
Beacuse I am a fool I followed the advice of a former high roller (I call them flats now, he used to call them apartments) and bought these for 165K. Using net income and 15% vacancy rate and 8% yield, I think they are worth 80k. From what I hear they are impossible to sell, even though occupancy is 100% so far.
I assume that when the repayments default the bank will move for control, sell the flats off cheap, and come after me for the balance. I have one other property in Ireland outside of my family home and I am trying to sell that to cover the UK losses.
Ultimately they will get a judgement and put a judgement mortgage on my home. That does not really concern me because I have a lot of experience of securing judgements for bad debt in courts and have never been paid a penny. People realise they cannot and will not borrow again so their credit rating is not a concern to them and I fell I am joining their ranks having tried to invest my way to a retirement fund and something for the kids. But I have failed badly.
Ironically, I have never spoken or corresponded with the bank since I drew down the 165K almost 5 yaers ago. They probably think they have a performing loan.
Any advice on handling this mess would be appreciated