Family member has asked me for advice. I dont really know what to tell them. There doesnt seem to be any way out of this? They are in negative equity at the moment in a rental property they have.
The dreaded letter came changing from Interest only to capital. Their bank have stopped all interest only .They bought in 2006 for around 400, house is maybe if you are lucky worth 250 maybe nearer 200. on interest only at the moment of 1k if it changed to capital it would be over 2K. They can pay this, as its rented out, but is there any real point.
Are they just throwing good money after bad. Do you just sell it but where do you get the difference. What do you do in this situation?
The dreaded letter came changing from Interest only to capital. Their bank have stopped all interest only .They bought in 2006 for around 400, house is maybe if you are lucky worth 250 maybe nearer 200. on interest only at the moment of 1k if it changed to capital it would be over 2K. They can pay this, as its rented out, but is there any real point.
Are they just throwing good money after bad. Do you just sell it but where do you get the difference. What do you do in this situation?