Johnny has an investment mortgage property. Has had it on the market for some time and has failed to sell it. Property prices in his area are at an all time low.
Roll on three years and Johnny is in receipt of an offer from a potential cash buyer to purchase his investment property. The offer is 60% lower than what the property is mortgaged for.
Are Johnny's bank likely to accept this offer and place the shortfall into a personal loan considering that his credit history is impaired?
It's a long shot the bank will accept this offer but very unlikely that Johnny will receive another offer if prices disimprove further.
Roll on three years and Johnny is in receipt of an offer from a potential cash buyer to purchase his investment property. The offer is 60% lower than what the property is mortgaged for.
Are Johnny's bank likely to accept this offer and place the shortfall into a personal loan considering that his credit history is impaired?
It's a long shot the bank will accept this offer but very unlikely that Johnny will receive another offer if prices disimprove further.