stop repayments on investment property-what happens nexts

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We own two properties, an family home with about 100k equity that we are currently on a interest only repayment agreement with NIB and an apartment that is about 150k in negative equity, also on an repayment agreement with the bank of 1000e per month, which is less than the interest on the mortgage. we have had a rent allowance tenant in there for the last 4 years which was fine however she is now refusing to move out, I issuied her with an evection notice in April. She has now stopped paying rent and the apartment itself needs maybe 3000e to bring it back to a rent-able standard. We really cannot afford to cover the mortgage repayments without rent nor put anymore money into it My question is if we stopped all repayments on the apartment what would happen to the family home, which is cross secured against the apartment.
 
You don't have €100k equity in your home, if you have an additional loan of €150k secured on it? Your total negative equity is €50k.

If you don't make the repayments or get permission not to make them, then they will initiate repossession proceedings. They will sell the investment property and get a judgement for the shortfall which will be due against your home. If you don't pay that, they can initiate proceedings to repossess it.
 
Brendan Burgess said:
They will sell the investment property and get a judgement for the shortfall which will be due against your home.
Click to expand...

The family home is probably far more saleable than an apartment and is security for the investment apartment, could they seek to repossess the family home first, possibly arguing the vacant apartment could become the family home ?
 
The PRTB should be able to help you with the tenant. There must be some way to resolve things to get rental income coming back in in
 
Brendan Burgess said:
You don't have €100k equity in your home, if you have an additional loan of €150k secured on it? Your total negative equity is €50k.

If you don't make the repayments or get permission not to make them, then they will initiate repossession proceedings. They will sell the investment property and get a judgement for the shortfall which will be due against your home. If you don't pay that, they can initiate proceedings to repossess it.
Click to expand...

Yes, that's correct...on our two mortgages combined, we would have 50k negative equity...my question is how likely is it that the bank would repossess a family home, does the fact that it is a family home have any protection and also that even by selling it, the debt would still not be cleared. I would be ok with a judgement on the family home mortgage as we would not want to sell it anyway and we don't care about our credit rating etc.
 
I presume it's the same lender with both mortgages?

If so, they could repossess if the mortgage is not sustainable.

I suggest you complete the Case Study format to get a more comprehensive answer.

Brendan
 
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