robert 200
Registered User
- Messages
- 210
Think this calls for a celebration.
, it depends how pragmatic that approach is and the detail provided is scant.
Are all the properties cross-secured on the family home?
Hi Brendan ,
I didn't involve IMHO in the end , i thought the softly softly approach might be better and luckily it worked out.
Am I the only one here that finds this deal a bit worrying? AIB are a state owned bank after all.
The 3% annual growth in House prices bit...what happens if that doesn't come to pass.
If it does, what happens in 5 years time- do you have to sell up and pay down debt. Or do you switch to the full Mortgage amount, incl Capital, and continue on?
Hi Dereko ,
There were a few reasons I ended up in this situation .
A heart attack , prostate cancer , an acrimonious divorce , BOI and AIB shares and a little thing called
an Economic Downturn that wiped approx. 65% off the value of my buy-to-lets.
I suppose part of what i'm trying to find out is why they haven't forced the sale of any of the 8 buy to lets.I never really understood why this was important, you owe the money and they will come after everything, they don't need cross security.
What would that achieve? It would leave the borrower with fewer assets to increase in value to plug the negative equity gap - making it longer and less likely that the problem would be sorted. If, for example, they forced the sale of 4 of the 8 properties, it would take the borrower 10 years rather than 5 to have the property values back at the same value as the mortgages (this and following comments assume the 3% forecast increase happens). And just think about that - in 5 years time, the mortgages and the properties will be valued the same - so what has the borrower gained? At that point, his buy-to-let balance sheet is at zero. It's not like he will own them outright in 5 years time courtesy of AIB/the taxpayer/you.I suppose part of what i'm trying to find out is why they haven't forced the sale of any of the 8 buy to lets.
Hopefully this will be a lesson to A.I.B. - to work with their customers and stop using bullying tactics.
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