H
Howmuch
Guest
Hi,
I have a residential investment property mortgage ( in addition to my home), which I had rented out up until recently. Up until 6 months ago, I had been on interest only, but then the bank said that the interest only period was up and I had to go onto capital and interest repayments. I managed eventually to get them to extend the term of the mortgage to 30 years ( 25 years now remaining) so that I could just about afford to pay back the capital and interest.
Unfortunately the tenant in the property has now left owing money and has damaged the property to such an extent that the house is currently un-rentable.
The net result is that any rainy day money I have is now being used to repair the house. I do not have the money to keep up the 1500 per month repayments on the RIP mortgage( in addition to my home mortgage repayments). I have been on to MABS and they suggested that I treat the RIP mortgage as a business loan, i.e.:
Ensure that I keep up repayments on my home.
Ensure that I have enough money for my family day to day.
Move my salary to a different bank along with any direct debits/standing orders so that the bank cannot set-off day to day money in my current account against any potential RIP mortgage arrears.
Pay back whatever against the RIP mortgage.
My wife has had enough of the RIP property ( we have had to fix it up repeatedly in the last few years and it is actually affecting her mental health) and just wants me to sell it. I have the peoperty on the market now for a few months, but no bites. My estate agent is saying that I need to drop the price by another 30K to realistically sell it. This would leave me with a 150K shortfall on the mortgage if I managed to sell at that price.
I'm not sure what I would be able to do with that 150K that I would still owe.
Has anyone any ideas what my options might be?
(without this RIP mortgage repayment I can afford to live and pay back the mortgage on my home. I believe that there might be about 50k of positive equity in my home)
Any help/suggestions would be very welcome, as there does not seem to be any light at the end of the tunnel.
I have a residential investment property mortgage ( in addition to my home), which I had rented out up until recently. Up until 6 months ago, I had been on interest only, but then the bank said that the interest only period was up and I had to go onto capital and interest repayments. I managed eventually to get them to extend the term of the mortgage to 30 years ( 25 years now remaining) so that I could just about afford to pay back the capital and interest.
Unfortunately the tenant in the property has now left owing money and has damaged the property to such an extent that the house is currently un-rentable.
The net result is that any rainy day money I have is now being used to repair the house. I do not have the money to keep up the 1500 per month repayments on the RIP mortgage( in addition to my home mortgage repayments). I have been on to MABS and they suggested that I treat the RIP mortgage as a business loan, i.e.:
Ensure that I keep up repayments on my home.
Ensure that I have enough money for my family day to day.
Move my salary to a different bank along with any direct debits/standing orders so that the bank cannot set-off day to day money in my current account against any potential RIP mortgage arrears.
Pay back whatever against the RIP mortgage.
My wife has had enough of the RIP property ( we have had to fix it up repeatedly in the last few years and it is actually affecting her mental health) and just wants me to sell it. I have the peoperty on the market now for a few months, but no bites. My estate agent is saying that I need to drop the price by another 30K to realistically sell it. This would leave me with a 150K shortfall on the mortgage if I managed to sell at that price.
I'm not sure what I would be able to do with that 150K that I would still owe.
Has anyone any ideas what my options might be?
(without this RIP mortgage repayment I can afford to live and pay back the mortgage on my home. I believe that there might be about 50k of positive equity in my home)
Any help/suggestions would be very welcome, as there does not seem to be any light at the end of the tunnel.