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Dead End? Young Couple fighting Loan

platelicker
platelicker Posts: 10 Forumite
Hi all,

My wife and I took out a loan to help purchase 2 properties 4 years ago.

Long story short, we can no longer afford the payments, and told the bank the same 11 months ago. They basically said tough luck, and we have struggled to make the payments each month since then.

We owe in quite a few places and our outgoings outweigh our incomings each month. Our sollictor has put together a voluntary handback of property proposal to the bank but we arent too optimistic.

Should they be more helpful? I fully appreciate that its us who want the terms of the loan to change, having signed the contract - but I was hoping there was some sort of Good Practice that Financial Institutions had signed up to.

I know Im rambling, I do that when Im nervous..........

Any help would be greatly appreciated - and feel free to tell me if we are simply screwed!!!!
«13

Comments

  • CH27
    CH27 Posts: 5,531 Forumite
    Can't you sell the properties?
    Try to be a rainbow in someone's cloud.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    how much do you owe
    how much are the properties worth
  • platelicker
    platelicker Posts: 10 Forumite
    yeah sorry, forgot about the details, Properties are worth roughly £130k, loan is now at £175k.

    However, the bank will just sell them for whatever they can and not worry about getting best price.

    We have just missed our second monthly payment, although i think Ill be able to make that payment next week......

    Anyone know if there is any chance the banks take pity on people ever???????

    Its Bank of Ireland (Northern Ireland) by the way.....
  • GAH
    GAH Posts: 1,034 Forumite
    What are the two properties for?

    Do you live in 1 of them?
  • platelicker
    platelicker Posts: 10 Forumite
    They are rented out, we bought them as pensions with equity out of our home at the time. (just so you know we are some kinda millionaires!!!)

    The rent does not cover the loan repayments on the two houses, we have to add about 450 p/m to the rental income.
  • platelicker
    platelicker Posts: 10 Forumite
    Our own home has a bit of equity in it, since we did some renovations 2 years ago, but our mortgage (different bank) wont release any more cos its at 75% of value at the minute......
  • GAH
    GAH Posts: 1,034 Forumite
    I was going to suggest topping up a little, but as you have just said you are topping up quite a bit already
  • paddyrg
    paddyrg Posts: 13,543 Forumite
    Hmmm sounds like you're hosed, getting into the market hoping for easy gains, and losing the gamble. I'm, sorry to hear it, but it sounds like you're in the same position as many other people who got into an inflated market expecting eternal growth :-(
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    yeah sorry, forgot about the details, Properties are worth roughly £130k, loan is now at £175k.

    However, the bank will just sell them for whatever they can and not worry about getting best price.

    We have just missed our second monthly payment, although i think Ill be able to make that payment next week......

    Anyone know if there is any chance the banks take pity on people ever???????

    Its Bank of Ireland (Northern Ireland) by the way.....


    it a business loan and not a owner occupier mortgage so its very likely that the bank will see it in that light

    without knowing your full details it's difficutl to say

    e.g. can you sell all three properties and pay off the debt?

    what's your income and spending?

    post up some details

    http://www.makesenseofcards.com/soacalc.html
  • Apples2
    Apples2 Posts: 6,442 Forumite
    Why are you offering a voluntary surrender? As you rightly point out, it may go for a pittance.

    Why can't you simply bang a for sale sign up and sell one on the open market?
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