200k Debt going to bank recovery

and_e_says

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I owe a bank €210,000 on a failed property investment which is empty & in need of refurbishment (which I can't yet afford) & worth about €120,000-140,000 on the open market, if I'm lucky.

So, now after much arguing & 4 years of interest only, they have decided the debt will go to "bank recovery" regardless of any possible solutions I have presented.

My wife & I both signed as a partnership, so no company exists.

I'm currently working self employed in a food business which is just about keeping our family bills paid. My wife doesn't get much time off from keeping a home & looking after our 4 kids but does help out in the business regularly.
We have no other cash/investments except for shy of €20,000 in 2 inactive pension plans not maturing till 2035 and a 170,000 home mortgage (market value probably 180k), with a different bank, which I'm just managing to keep fully paid up to date.
We have just about enough to keep things going at the minute but any more pressure financially will send everything spiraling out of control.

They have notified us that they will this month, pass the case over to the bank debt recovery unit, thus I presume they will sell the property to the highest bidder leaving a shortfall on the full €210,000 debt.

I have a heap of unanswered questions, including...
What procedures will they use & what will the implications be on my current situation?
Can/will they come after my home for any balance due?
What are my options to keep the bank at arms length while dealing with the debt?
Who should I talk to? solicitor? accountant? God?

I talked to mabs & they said maybe a PIP was the way to go but the fact that I have a commercial mortgage is a contract different to that of a household mortgage, plus its just the bank & me, not a list of creditors so seemingly the bank won't entertain a PIA if its just one on one. Is this correct?
What are the PIP fees likely to be 100's ? 1000's??

Essentially, I'm very concerned about what they can do to me financially & what I should/can do to protect my home & family.

Any info/advice greatly appreciated
 
Your family home is OK so don't worry on that factor. Worst case scenario is they could get a charge put on it (for whatever is outstanding from the investment property). This means should it make a big price at a sale further down the line they could recoup their loss. That would take them a few years to secure probably, as long as you don't bury your head and engage with them.
My first thought is stop paying the interest only immediately as it seems they are the only ones gaining. The bank have happily strung you along while they still have all to gain as far as I can see. Is the house in anyway lettable as is ? This might help with bills. Do not engage with the bank over the phone at all costs. Everything must be in writing. If you were in a negotiating position I would advise to talk to them with any offer and don't put any of that in writing till they show signs of agreeing. I would offer them the house with any residue written off with immediate vacation by you and see what they say. Stand your ground no matter what kind of lesser offer they make. They have done you a disservice to now by dragging this out as long as you paid so you really need to use the same tactics back.
Good luck
 
Thanks for that elcato.
After giving into bank demands for so long now, I'm almost happy to see the back of the property & take the consequences. My main concern now is my family home security.

Its a bit of a tangled web...
It was to be a commercial premises & I had a small lettable portion of the property rented out @ 500 p/month but the bank insisted that full interest & capital @ 1,500 p/month is the only amount acceptable going forward as I have had (in their opinion) too long on interest only with no headway to making full repayments. My tenant has since moved & winter is a bad time for securing anther tenant so its now empty, the rest of it's not lettable at the moment. They just seem hell bent on full repayments or noting at all.

I had been on a rolling 6 month loan review with every meeting resulting in me signing up to another period of interest only just because I couldn't see an alternative. So I was probably tied in with small print & contract conditions, I just kept up interest repayments because it kept things flowing without the bank calling me up. However, the last review period ended in June 2014 & I have not re-signed any agreement of any payments...I don't know if that matters.

They have indicated, over the phone, that regardless of the outcome there is no negotiating or write down of any portion & that I am liable for the full amount. I am since only communicating via mail / email.

The last communication they sent was that the property was going to recovery & I should move all my banking to someone else as they no longer would do business with me. The last interest only payment came out on 01 Dec & after that I have all funds withdrawn from current account. I contemplating whether I should put in money to cover the next demand in January...I probably won't, time to make a point maybe !

Does anyone know if they're likely to send someone knocking on my door to repossess the keys of the investment property? Or how does it work?
 
I contemplating whether I should put in money to cover the next demand in January...I probably won't, time to make a point maybe !
Yes. Unfortunately you need to be in arrears before they actually start to take you seriously so stop it now.
Does anyone know if they're likely to send someone knocking on my door to repossess the keys of the investment property? Or how does it work?
Nope. They need a court order and they need to notify you through this process. As long as you are sure they haven't started this process then it will take two years probably. Use this period to play hardball and offer to vacate for a price. Starting point is vacate when any shortfall on mortgage written off. Don't wait about, just send off the letter to them (or verbally suggest it if they ring). Don't ignore any court cases or threatening letters (remember that's all they are - threats) and deal with them accordingly giving the same mantra all the time. As soon as they give you some deal you are happy with then settle but only if they have put it in writing. Remember, don't fret with any heavy sounding letters claiming all sorts. Judges are very aware of what's happening and are generally sympathetic as long as you are making an effort to sort out your affairs in a reasonable way. Feel free to use this thread to keep us informed and to get some updated advice but don't give any information that might identify you or the case.
 
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