bought a house as an investment

[jdpal]

Hi,
I had bought a house as an investment and am not able to keep up the payment because the interest has gone up on the mortgage. I want to sell the property and pay off all the dues to the lender. I am not able to get any agreement with them on a time table to pay off the dept and sell the house. Please suggest - JD

[MelanieGiles]

Hi jdpal and welcome to the forum

Is the house on the market yet and, if so, what timescale have your agents given to you for securing a sale? Who is the lender? Do you have a tenant in the property? If so, what is the difference between the rent you are paying and the mortgage payments. if the mortgage is a repayment mortgage, why not think about reverting to interest only for a short while?

If you are unable to keep up with the mortgage payments, you will fall into arrears and when these go higher than three months outstanding the lender has the right to seek a possession order over the property and can the sell it. In which case they will do not better than you a presently doing, so I really can't see the point of their lack of support.

I am afraid that we will probably see more buy to let possessions over the next year or so, given the recent and predicted interest rate rises.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk