Joint mortgages -we think. (temp title - split from existing thread)

We are in a nearly similar position. My sister in law met a man in 2005 and he was very keen to marry her within a few months and have babies (her alarm bells should have started ringing!), she had her rose tinted glasses on and he organised paperwork with PTSB to combine her property, his property, and obtained a 100% mortgage for both of them for a third property, so they could live together happily ever after. Was this normal procedure at the time considering they were only girlfriend and boyfriend for a few months, anyone out there know? I know banks did all sorts of things to allow borrowers to get mortgages during the so called celtic tiger.

They split up even before she moved into the so called love nest of a third property. She approached me and my husband to ask if we wished to invest in the 3rd property, it is a lovely 4 bed semi, so we agreed it would be a short term investment and then it could be sold. We have a house ourselves which we have paid off in the last 3 years.

PTSB said that for the short term, 6 weeks was stated verbally and not in writing, that myself and my husband would also have to go as guarantors on my sister in laws original property before they would agree. So Mr exboyfriend was taken off the love nest property, and her own property and she was taken off his. That was all hunky dorey for him, we are now stuck in what seems a never ending roller coaster since 2007 of trying to get out of my sisters in laws first property, every time she falls behind with repayments she keeps wanting to add it onto the end of her existing mortgage and is always looking for our signatures. Anyone know if PTSB could take our residential home from us if she is unable to pay for her own mortgage? I am meeting PTSB on Monday to state our case. Anyone else out there with 3 properties inter linked and a 100% mortgages given since 2006? What were they thinking. We have been on interest only since 2006 and if we opt for SVR it would be an extra 350 euros. What a mess.

TERESA MARY said:

PTSB said that for the short term, 6 weeks was stated verbally and not in writing, that myself and my husband would also have to go as guarantors on my sister in laws original property before they would agree. So Mr exboyfriend was taken off the love nest property, and her own property and she was taken off his. That was all hunky dorey for him, we are now stuck in what seems a never ending roller coaster since 2007 of trying to get out of my sisters in laws first property, every time she falls behind with repayments she keeps wanting to add it onto the end of her existing mortgage and is always looking for our signatures. Anyone know if PTSB could take our residential home from us if she is unable to pay for her own mortgage? I am meeting PTSB on Monday to state our case. Anyone else out there with 3 properties inter linked and a 100% mortgages given since 2006? What were they thinking. We have been on interest only since 2006 and if we opt for SVR it would be an extra 350 euros. What a mess.

Click to expand...

Firstly, the issue of the short term guarantee appears to be extremely unusual. It appears that you must have signed a standard bank guarantee with no agreement on time limitation. It would be very difficult (without some written proof), to assert that the Bank assured you that the guarantte would be short term. Never sign a Bank guarantee, unless you are prepared to pick up the ultimate tab on the loan. However, this now appears to be water under the bridge.
Primarily this is your sisters problem and she will have to deal with the repayments/sale of the property. However, as guarantors you are liable on any shortfall that she is not willing/able to cover. You will not lose your own residence as a result of this, but the Bank can take legal proceedings against you and register judgement against any property owned by you. You should try to avoid this happening by reaching some level of agreement with the Bank.

Thanks for that, better start talking to the bank as the sister in law is in a permanent public service job but has no concept of how much she spends.

TERESA MARY said:

She approached me and my husband to ask if we wished to invest in the 3rd property, it is a lovely 4 bed semi, so we agreed it would be a short term investment and then it could be sold.

We have a house ourselves which we have paid off in the last 3 years.

PTSB said that for the short term, 6 weeks was stated verbally and not in writing, that myself and my husband would also have to go as guarantors on my sister in laws original property before they would agree.

.

Click to expand...

This poster should have a thread of her own.

Property 1
4 bed semi, owned by you, hubby and sister in law (SIL). How is the mortgage on this being paid?

Property 2

Your home, owned by you and hubby and no mortgage

Property 3

Owned by your SIL but you and hubby are guarantors on the mortgage.

SIL is not fully paying the mortgage. Does she live in this house?

Is this the correct scenario? And you're very lucky she's in a permanent job. Because that means there is some hope.