Seeking advice on vol sale of btl

[Monopoly]

We need some advise please....

We had 2 btl properties - both of which were in negative equity. One was sold recently and we used funds (one of us made redund so used that money) to pay some of the arrears and then the shortfall is being paid off monthly.

2nd btl is currently on the market. So tenant has moved out quicker than expected, but that's another story.

We know that there will be a residual balance but we are voluntarily seeking to sell the property. Bank will make us anyway...... So this is where we need advise.

My wife is not working right now, We have 3 children all young school going ages-
our income is as follows:

2,700 net monthly plus children's allowance benefit, (3,100)
Mortgage is €1000pm

My wife was the main earner so life has taken a sharp blow for the worse. We are trying to reach an agreement before we sell the property as our health is taking a battering especially my wife we have no life we are in constant state of anxiety and stress.

We cannot afford the exorbitant fees for an advisor (quoted savage fees of in a outs 6k). We have recently sent our paperwork to IMHO but my question is ....

What are our options ? (The residue could be 70k. We are a unsure as yet but in or around).

We will not afford our home house if they out the residual balance onto it, will they do it anyway?
Our SFS shows no affordability at this time. Of course our plan is for that situation to change in the future, will they park the balance ....do they do that ?

All of these mortgages are with the same bank.

I would appreciate any advice

 

[newirishman]

What is your PPR at the moment? Renting, or owning without mortgage?
Might be worth doing a full assessment.

What's the driver for selling the BTLs, could you not hold on to the 2nd one until NE situation improves?

 

[Bronte]

Which bank is it?

You are worried that the shortfall will be put on your home as a judgement mortgage. That's your main worry. If they come to an arrangment which lets you live reasonable and pay off your debts it shouldn't be a problem, hopefully with IMHO's help that is exactly what will happen.

Awaiting your figure on the mortgages. By any chance are any of the mortgages in only your wife's name?

 

[Monopoly]

We have a mortgage on the pfh we have never to date fallen into any arrears on that. As well as buying at the height of the 'boom' (hate that word!!) . we were unfortunate with btl' over the years with non paying tenants and damaged property we reckon that we lost equiv. of 18months or more rent over the years between one thing and another.
.... So reason for selling is that they have gone into arrears. Bank suggested that we sell so we are trying to cooperate so it doesn't get nasty.

Yes a judgement would be a killer really. It will hang over us for ever. I guess we can't rule it out though but wouldn't it mean that we will be forced to sell here ?

Do you know what other options we have ? We do need to make some proposals don't we ?

Bronte all of the mortgages are in both names and with Aib.

 

[44brendan]

Yes a judgement would be a killer really. It will hang over us for ever.

No it won't. Many banks will not even bother taking out a judgment where they see a low income position such as yours. Yes they could do so and place a JM on your PDH but even in that worst case scenario the JM will be statute barred in 12 years. Depends on the bank but in many of these cases the residual debt is parked as legal expenses are costly and not worth pursuing unless there is a reasonable option of getting some funds back in the short term.

 

[Monopoly]

44brendan I got a little glimmer of hope when you mentioned first that it wouldn't be the first option and I hope you might be right ....but there is equity on this house (prob 200k after our own mortgage on here) but we wouldn't ever get another mortgage I'm sure we are blacklisted because of the arrears. And we would never house our family with 200k where we live. One of our three children has health issues which is likely to deteriorate in time and this house is equipped for that senario. It's a nightmare ...

 

[joanj]

Monopoly,I know this an old thread but I'm in a similar situation that you were in and I'm wondering if a judgement mortgage was put on your house or how did it pan out.