Two house ownership

[2339gem]

There is a large morgage outstanding on property No.1. Currently there is a mortgage holiday on this property - the holiday expires 1Q2009. There is also a morgage on property No.2 There are insufficient funds to pay the mortgage on property No.1 when the holiday expires in 2009. The mortgage repayments on property No.2 are current and up to date. Will the lender of the morgage for property No.1 insist for the sale of property No.2 to pay back some of the outstanding debt on property No.1?

[cassa333]

Why would they insist on selling or remorgaging property 2. If the payments were to be in default on property 1 surely if they were going to insist anything be sold it would be number 1 not 2???

Do you live in any of the houses? and do you need both? if not sell the one you don't want...

[weekendwanda]

Unless your finances improve the only sensible course is to sell one of the properties.
The mortgage lender for property 1 cannot force you to sell property 2. What they will do, if you fall into arrear, is commence possession proceedings. If you cannot pay instalments plus something monthly off the arrears an immediate order for possession will be made. The mortgage lender will sell. You will receive any surplus after the mortage and costs repaid. If a deficit you will be liable to pay.

[paulthewall]

Talk to your lenders and try to get the loan period extended, and when things improve shrten them again