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Default on buy to let..can bank call in family home loan as well?

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  • 01-07-2011 12:34pm
    #1
    robanne
    Registered Users Posts: 10 ✭


    Hi we have a buy to let property which is let but which I am in default on because 3 year interest only is up and I can only pay 650. Our family home is 1500. They want me to reduce family home payment and pay more into Buy to let. They have advised me that even if I am not in arrears on the family home that they will seize my family home as all sums owed will become due. I have checked the recent offer that they sent me and it is in the terms and conditions. I have also checked the original loan documentation and it is not there. We have two separate mortgage accounts, same account number but reference 1 and then 2. I have advised the bank that I have an appt with MABS but does any one know if this bank or others have the right to demand the payment of all monies owed if this situation occurs. The bank was bought out after we mortgaged with them. They are a foreign bank and are not taking part in the government schemes ie deferred interest.

    Thanks...
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    #2
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    They could certainly get a judgement against your family home for the unpaid debt which I suppose is effectively the same thing at the end of the day but don't know if they could force you to sell the family home to pay it.


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    #3
    bailes
    Registered Users Posts: 52 ✭✭bailes


    robanne wrote: »
    Hi we have a buy to let property which is let but which I am in default on because 3 year interest only is up and I can only pay 650. Our family home is 1500. They want me to reduce family home payment and pay more into Buy to let. They have advised me that even if I am not in arrears on the family home that they will seize my family home as all sums owed will become due. I have checked the recent offer that they sent me and it is in the terms and conditions. I have also checked the original loan documentation and it is not there. We have two separate mortgage accounts, same account number but reference 1 and then 2. I have advised the bank that I have an appt with MABS but does any one know if this bank or others have the right to demand the payment of all monies owed if this situation occurs. The bank was bought out after we mortgaged with them. They are a foreign bank and are not taking part in the government schemes ie deferred interest.

    Thanks...
    They would have to get a court order to sell the family home which is protected under current legislation so NO they can't force the sale but can get a judgement.

    They will not want to go down this route unless you are more than 3 payments in arrears and have not cooperated with them. loads of threads here on how to deal with them


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    #4
    robanne
    Registered Users Posts: 10 ✭robanne


    Hi all,

    I spoke with Mabs and they advised me to get onto the Financial Regulator. I was advised to be very careful signing any additional forms in relation to restructuring etc as the banks are making changes to loan documentation as they go along....Banks have no legal right to suggest that they can take your family home if you are in arrears on a Buy to Let. I urge people in my situation to be cautious and take legal advice if this situation applies to you.


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