2 years ago my family purchased a large commercial building that we part owned for the last 20 years, to do this we borrowed the money from a bank, the idea was to let out the building to pay back the loan from the rent received. We did this at the worst possible time and we haven't been able to rent out the building. It is in a great location and I know that we will eventually get someone in.
With no rent coming in we have just about been able to pay the interest on the loan from savings and from clubbing together as a family.
However we will soon be coming out of our interest only payment shcedule and we have no chance of paying the capital as well as the interest.
The loan is still less than the value of the building so if the bank did reposses it then they would probably make a profit if they sold it.
If we get more time (6 months) then I am sure we will get someone in and can then start paying back the capital.
Would the bank insist on the Capital to force the situation to get ownership of the property? Or will they give us more time to work this out?
I'm looking for opinions here on what the bank may do... or if anyone else has been going though something similar and what the result was??
With no rent coming in we have just about been able to pay the interest on the loan from savings and from clubbing together as a family.
However we will soon be coming out of our interest only payment shcedule and we have no chance of paying the capital as well as the interest.
The loan is still less than the value of the building so if the bank did reposses it then they would probably make a profit if they sold it.
If we get more time (6 months) then I am sure we will get someone in and can then start paying back the capital.
Would the bank insist on the Capital to force the situation to get ownership of the property? Or will they give us more time to work this out?
I'm looking for opinions here on what the bank may do... or if anyone else has been going though something similar and what the result was??