Investment Property 100K Neg Eq - Bank advising sale.

Own my own PPR
Investment property mortgage 350k
Negative Eq approx. 100k.
One income family - approx. 50kpa
3 dependants under 15

So Following on from my posts a few months back - I have eventually been able to speak with someone from the Arrears Dept from my bank (UB).

As we have been unable to meet interest only payment since January 2012 they have advised me that their solution to our problem is to sell the house and pay the balance off as per a future agreement.

Full capital repayment - €2400
Interest only - €1300
Currently paying - €300

Now I need to make contact with a financial advisor who would deal with this kind of a situation. I appreciate that this is not an advertising forum, but I have no idea how to go about getting the right kind of person who will be able to advise us on how to approach a deal with the bank.

I am hoping that should the property sell at the market value that the bank will accept some form of lump sum, (am thinking 20-30k that we can hopefully get as an unofficial loan from family) in full and final settlement. Would they be likely to accept such a settlement given that we own our PPR outright???

Any thought, comments would be much appreciated.

Reading this and your previous posts, you have not fully outlined your financial situation. Especially do you have a mortgage on your home.

On the limited info you have given, my advice is that if you sell the investment property and have a shortfall of €100k. You should NOT take money from family to settle with the bank. And don't raise this as a possibility with the bank or they ail try to force you to give them that money.

You will then have an unsecured loan, which you will be unable to repay. Will you be unable to repay, you haven't given much info.

The bank will then take you to court to try to force you to pay.

The court then has 3 options

1. Order you to pay €x amount each month, based on what you can afford. This is called an instalment order. Generally courts seem to be sympathetic to people in this situation and make affordable orders

2. Register a judgement mortgage against your home. This means that were you to sell your home within 12 years you would have to pay UB. But a judgement mortgage does not force you to sell.

3. Order repossession of your home for UB to sell. Old Nick has posted that this could not happen. I am not clear why he says this. I agree that a judge would be slow to put a family out of their home to satisfy a debt that is not secured on it, but I would like to hear why Old Nick rules this out completely.

There are two further pieces of info which may change this completely.

1. Is the loan on the investment property secured against your home.

2. Have you a mortgage on your home, and if so who is it with.

To be accurate about why I said that ,basically the court won't take OP's home I have no legal basis to state this.

At the time of writing that post I had not yet heard of a similar case where a court has thrown the family out of their (fully-paid) home. Chatting later to my legal/banker chums they also concurred that this is unprecedented.
But -to repeat - there is no legal barrier to the judge handing the house over to UB in what appear to be the circumstances described. e.g. low/mid income family with three kids, average house fully paid up, no other properties or assets. It just hasn't happened (AFAIK)

This has been the case even when the loan is secured against the house.

However, pressure from outside Ireland is being put on Irish lenders and the govnt to get tougher with borrowers. Does this mean that the day will eventually come when the courts have to take family homes to pay bank debts ?
I still doubt it, but would never say never.

I'm a bit confused as to what rent the investment property earns. Plus, what exactly has been paid since Jan 2012 -is it nothing each month or is it €300 per month ?
Does the ca. 50k p.a. income include rental income ?

As Creemeg says OP hasn't given clear/full details on several points.