We have 280,000 due on a commercial warehouse property mortgage. Have been using savings and extra work to meet the monthly payments for 8 years. 12 years left on mortgage. Mortgage costs 2300 per month and rates/insurance/repairs cost a further 1600 per month. Property brings in 1000 per month. When we started the loan was 350,000 and we put up 250,000. That was in 2006.
I am currently two years into a three year fixed interest rate of 3.94%
Property is in good shape but worthless. Its replacement cost would be about 2,500,000. It is an a very remote area with a very weak local economy. It will never ever get a buyer.
I do not have any more savings to give and my wife and I have maxed our earning capacity and cost reduction. We could possibly give 500 per month. We have never missed a due payment in our lives. We are 52. Property will not yield more than 1000 per month.
I am currently two years into a three year fixed interest rate of 3.94%
Property is in good shape but worthless. Its replacement cost would be about 2,500,000. It is an a very remote area with a very weak local economy. It will never ever get a buyer.
I do not have any more savings to give and my wife and I have maxed our earning capacity and cost reduction. We could possibly give 500 per month. We have never missed a due payment in our lives. We are 52. Property will not yield more than 1000 per month.
- When I start missing payments in a couple of months time, what are the bank going to do ?
- I have a personal pension with 500,000 in it but I think the bank do not know about it. I can get 25% of it straight away. But I do not want to put pension into a worthless property.
- Can I expect the bank to leave 280000 in the same property, when I wont put in any more that 500 per month and refuse to put in the pension ?
- I would love an interest only period of 3 or 4 years. Things might be a bit better in five years time. Is that achieveable when I have been repaying all along.
- I think the bank should realise that I am their best chance of getting anything back on this mortgage. A bank appointed receiver wouldn't even find this place let alone sell it.