No Cross Secutization

[Alpha002]

Dear all, I have 1 home and 2 investment properties.

I have mortgages on the three properties with the same bank. My personal home is in positive equity (I am paying full capital and interest) but both investment properties are in negative equity (I am paying interest only on both).

There is no cross securitization between my personal home and the investment properties.

The bank are willing to do a deal on the condition that I sell my family home to allow them to benefit from the positive equity in my family home.

After all sales, the bank will then give me a new smaller loan on a SVR (I am currently on really good tracker rates), which will allow me to purchase a house outside the area that we live in.

Whilst I am doing everything I can to work out a deal, I am seeking to know my rights on the following points so I have full clarity on the situation.

In the absence of a deal:
1. On my personal home, my only commitment to the bank is to pay back the mortgage redemption figure. As long as the bank receives this amount, they have to hand over the deeds of the house to the buyer. Is this correct?
2. Can the bank stop me from selling my personal home?
3. How long will it take for the bank to force me to sell the investment properties, and then register a charge on the my personal home (for the short fall).
4. If the bank take me to court to sell the investment properties, could they put a stop to me selling my personal home (while these proceeding are on-going)?

Please note, I am not looking to pull a fast one, I just want to have full clarity on the my rights during this negotiation period.

The bank are adamant that the deal is contingent on the sale of my personal home even though there are no arrears and we are paying full capital and interest.

All advice greatly appreciated.

 

[Brendan Burgess]

Hi Alpha

You should post the full details in this format:

Information required for mortgage arrears and negative equity questions

If you have cheap trackers on all three properties, it is very unlikely to be a good idea to sell them, even if you are getting some debt write off.

1. On my personal home, my only commitment to the bank is to pay back the mortgage redemption figure. As long as the bank receives this amount, they have to hand over the deeds of the house to the buyer. Is this correct?

I think so. But your solicitor would know for sure.

2. Can the bank stop me from selling my personal home?

I don't think so.

3. How long will it take for the bank to force me to sell the investment properties, and then register a charge on the my personal home (for the short fall).

It depends on your mortgage agreement. They probably allow the bank to appoint a receiver to the properties without going to court. In most cases, the receiver can sell the property. It would take them some time to get a judgement against you.

4. If the bank take me to court to sell the investment properties, could they put a stop to me selling my personal home (while these proceeding are on-going)?

I doubt that they need to take you to court.


I think you are asking the wrong questions. You should put up all the details to see if we can come up with a better solution for you.

 

[Alpha002]

Thanks Brendan.