Sold investment and shortfall added to home loan.

H

hoppy

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Not sure if this is the right place for this question but hopefully if not i can be pointed in the right direction.
In 2012 we sold a buy to let property at a shortfall.
(It had been on the market for the previous 3 years with out any offers).
So when our tenant made us an offer,even though it was 30k less than the combined 3 mortgages on the property we were eager to sell.

we had to beg the bank to allow us to sell as the rental income was way less the monthly mortgage. (the house next door sold for 20k less 6 months later)

The bank agreed on condition we took an equity release on our family home to cover the shortfall ,at the time we were so desperate we agreed and the sale went through. with the bank taking every opportunity to put us further in debt.
the sale went through and after a few weeks we realised we would have trouble paying the mortgage if we took on the equity release.

We went back to the bank and had a number of meetings to discuss our options but to no avail.
we were told sign the equity release or go to court, they did give us a 6 month moratorium on the repayments of the equity release but that was it.

As we felt we had no choice we signed the equity release papers and sent them off.
Every month we recieve a letter from the Bank telling us the morgtage on the now sold property was in arrears (we questioned this and were told the were just automatically generated letters)

Fast forward to December and as we heard nothing from the bank even though the moratorium came to an end at the start of December, the equity release repayments didnt to kick in.
On Contacting the Bank we were told they had never received the equity release papers(even though it was signed under threat of legal action).

We asked if they hadnt recieved it why had we not heard from the bank in the previous 6 months ,this couldnt be answered .

Into January now and apparently the equity release papers have been found in another (unnamed department) .
Suddenly we are being offered another 6 month moratorium and the bank has even offered to hand deliver new documents to be signed.
We feel their is something very fishy going on here and would love some advise.
 
You sold an investment property at a shortfall of €30k.
You knew that you would still be liable for the shortfall.
You agreed to add the shortfall to your home loan.
Then do so.

What is the question?

The paperwork and moratoriums are just a distraction.

with the bank taking every opportunity to put us further in debt.
Click to expand...
How did the bank put you further in debt? You owed this money anyway.

They have given you a 12 month moratorium. Is this a full payment moratorium or a capital payment moratorium? If it's a SVR mortgage, you probably should be trying to pay the mortgage to save on the interest accumulating.
 
hoppy said:
...Fast forward to December and as we heard nothing from the bank even though the moratorium came to an end at the start of December, the equity release repayments didnt to kick in.
On Contacting the Bank we were told they had never received the equity release papers(even though it was signed under threat of legal action).

We asked if they hadnt recieved it why had we not heard from the bank in the previous 6 months ,this couldnt be answered .

Into January now and apparently the equity release papers have been found in another (unnamed department) .
Suddenly we are being offered another 6 month moratorium and the bank has even offered to hand deliver new documents to be signed.
We feel their is something very fishy going on here and would love some advise.
Click to expand...
I wonder if the bank have screwed up and don't actually have properly signed documents at all. Why not ask them for copies of everything they have? If you want to play hardball you'd certainly be playing a better hand if it turned out the bank's paperwork was deficient.
 
Dub nerd/Hoppy.

1. Borrowed to make money, so you took the risk and you are caught with a shortfall.
(Had you made profit would you have given Bank more?)
2. Yet again, it appears Mr Banks documentation is @ best suspect?
( so unless Mr Bank can show properly signed/agreed Documentation it makes enforcement hard)
Comment;
Looks like there are 2 of you in it .
Bank seems to have been hard in their (pushing)
You seem naiive in saying Bank taking opportunity to put you in debt?

Suggest ; Meet them and come to whatever arrangement to sort the shortfall. Were you not lucky you did not wait another 6 months and have another k20 to contend with? Maybe perversely Bank did you a favour pushing you ?
 
Actually we didnt buy the property to let or make a profit it was a family home we were forced to rent out (A very long and complicated story ,currently we have a 20 page document outlining how we got to this stage ,including very bad advice from the bank ,which eventually led to my partner being effectively homeless for nearly 2 years )she was forced to rent out the family home making it a buy to let in the banks eyes).
but thanks for judging.
 
I think the point being made OP is that it wasn't the bank "trying to put you into further debt", it was your own decision and situation that got you there.
 
Sorry for the confusion, we recieved paperwork from the bank today to sign ,which appear to be loan applications for the the equity release ,these have been back dated to 6 months ago by the bank.
looks like someone at the bank slipped up and they are now trying to cover up their mistake.
 
Hi hoppy

But the paperwork is only following the real world.

You have a liability for the shortfall. You know that and you accept that.
You agreed to add it to your mortgage.

So I don't see why an adminstative hiccup puts you at any disadvantage.

The lender has obliged you with two moratoriums.

Brendan
 
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