M
mumoftwo
Guest
Not sure if its the right place to post this, but looking for some advice.
We were one of the unlucky ones who bought an apartment in boom years and then moved on to another property and kept the apartment as investment. Now both the investment and our residential property are in major negative equity.
Investment Property Mortgage : 260,000
Investment Property Value : 120,000 approx
Negative Equity : 140,000
Residential Property Mortgage : 350,000
Residential Property Value : 200,000 approx
Negative Equity : 150,000
On top of this we have personal loans - cr union, cr cards, tax liabilities etc of approx 80K
We were getting a rent of 800Euros per month and paid 1000 towards investment property each month. Now the apartment is vacant and there is no way, that we could afford to pay mortgage on the investment.
Is it possible to discuss with bank to sell off the investment property and get some sort of personal loan of 140K (negative equity)? I dont think bank will agree to that. But I am hoping that they will be happy to get something - approx 100K from the total mortgage of 250K if we were to go down this route. I do not see the apartment to be rented out in the near future as its not in an ideal location and if it does rent out it would be at a lower price.
Our residential home is in negative equity as well and we can just afford to pay interest only at present on that. Both properties are owned by different banks.
What happens in this scenario>? I am already 2 months in arrears with investment property.
We just do not have the means anymore to afford the investment property - We did 5years ago - but a lot has changed since then (financially!).
I just need to know - can I give the keys of the investment property to the bank - let them handle the sale etc.. and whatever they get - they keep it and I can forget about it.
Or will they give me personal loan of some sort to pay up the negative equity? I dont think I will be allowed any personal loan with my income plus all other loans that I have at present... but could they "make me" pay for the amount for next 20-25 years. I am OK to do that - I would like some advice on how to approach the bank to come to either of these solutions.
thanks
We were one of the unlucky ones who bought an apartment in boom years and then moved on to another property and kept the apartment as investment. Now both the investment and our residential property are in major negative equity.
Investment Property Mortgage : 260,000
Investment Property Value : 120,000 approx
Negative Equity : 140,000
Residential Property Mortgage : 350,000
Residential Property Value : 200,000 approx
Negative Equity : 150,000
On top of this we have personal loans - cr union, cr cards, tax liabilities etc of approx 80K
We were getting a rent of 800Euros per month and paid 1000 towards investment property each month. Now the apartment is vacant and there is no way, that we could afford to pay mortgage on the investment.
Is it possible to discuss with bank to sell off the investment property and get some sort of personal loan of 140K (negative equity)? I dont think bank will agree to that. But I am hoping that they will be happy to get something - approx 100K from the total mortgage of 250K if we were to go down this route. I do not see the apartment to be rented out in the near future as its not in an ideal location and if it does rent out it would be at a lower price.
Our residential home is in negative equity as well and we can just afford to pay interest only at present on that. Both properties are owned by different banks.
What happens in this scenario>? I am already 2 months in arrears with investment property.
We just do not have the means anymore to afford the investment property - We did 5years ago - but a lot has changed since then (financially!).
I just need to know - can I give the keys of the investment property to the bank - let them handle the sale etc.. and whatever they get - they keep it and I can forget about it.
Or will they give me personal loan of some sort to pay up the negative equity? I dont think I will be allowed any personal loan with my income plus all other loans that I have at present... but could they "make me" pay for the amount for next 20-25 years. I am OK to do that - I would like some advice on how to approach the bank to come to either of these solutions.
thanks