Mortgage arrears - will they take investment property

Hi,

We have just entered the mortgage arrears world - no income - applying for social welfare. House worth 2/3 of the mortgage. Have an investment property - no mortgage on that or income from it.

We are hoping to apply for a 6 month moratorium on the mortgage while we work something out - if they find out about the apartment will they want us to sell that or use that to pay mortgage on ppr?

Can I please ask why you are holding onto this apartment which is worth money and is not getting you any rent. When you cant afford you mortgage for your primary residents?

You would only transfer that apartment into your kids names if you were looking at defaulting on your current mortgage and going bankrupt. Anyway some builders tried this but the transactions were reversed when taken to court.

If you could give figures on the mortgage of your house and the value of the apartment/potential rental income from this.

It maybe a case of renting this apartment out to help pay your mortgage.

The apartment needs some big repairs before we can rent it or sell it - in the process of getting this done hence no current income from it.

Mortgage 650,000
House 350,000
Apartment 150,000

No real prospect of jobs for at least 6 months due to family issues and health problems.

Was thinking of selling house until recent valuations - may be possible to go interest only on house and rent it out to pay the interest only
Sell apartment to buy somewhere small with no mortgage
Can't live in apartment as not suitable

Sure how do you reckon you are going to sell the apartment and live somewhere with no mortgage with your primary residence about to go into arrears?

Are you sure your house value has dropped from 650k down to 350k?

which means your in negative equity of 300k and if you cant afford the mortgage on your house the bank will have every right to force the sale of the apartment as if you had 150k in cash deposit you could afford to keep your mortgage payments up just because you have 150k in a property doesnt mean this shouldnt be sold to help pay back your debts.

Hard situation to be in alright I know myself as my property is in negative equity of about 140k and I was made redundant but luckily enough I was able to get another job after 6 months on much lower wages but im still able to meet the bills so keep positive on the jobs front.

Why not try selling the apartment as it is? Or perhaps you could rent it is it is, you might find someone interested if you were prepared to rent it at a low price and a agree a longer lease.