Thank you in advance for reading my post.
I have spent last two years negotiating interest only payments and full payment moratoriums with KBC on a RIP I have mortgaged with them.
They requested, as a condition of this current moratorium that I put the RIP on the market and it be sold as we both agree the mortgage is unsustainable. It went sale agreed for €175K leaving negative equity of approx €105K which I have discussed with them that I am not in any position to make repayment on.
My question is am I better off having €277K as a secured debt on the property or having €105K unsecured debt? I face the property being repossessed if I don’t sell it so need to make a decision on this. House is currently vacant as it was on the market but when being rented, rental income was €800 per month which went to the bank, the mortgage is approx €1889 per month and I cannot contribute anything towards this.
I would appreciate any advice or input.
I have spent last two years negotiating interest only payments and full payment moratoriums with KBC on a RIP I have mortgaged with them.
They requested, as a condition of this current moratorium that I put the RIP on the market and it be sold as we both agree the mortgage is unsustainable. It went sale agreed for €175K leaving negative equity of approx €105K which I have discussed with them that I am not in any position to make repayment on.
My question is am I better off having €277K as a secured debt on the property or having €105K unsecured debt? I face the property being repossessed if I don’t sell it so need to make a decision on this. House is currently vacant as it was on the market but when being rented, rental income was €800 per month which went to the bank, the mortgage is approx €1889 per month and I cannot contribute anything towards this.
I would appreciate any advice or input.