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Selling Question

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  • 20-05-2024 1:38pm
    #1
    Purpleeyes
    Registered Users Posts: 3 ✭


    Can the bank withhold sales proceeds from one property to offset a second loan (Investment property)? The accounts are not cross referenced.

    Thank you.

    Tagged:


Comments

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    #2
    Iscreamkone
    Registered Users Posts: 799 ✭✭✭Iscreamkone


    Maybe is the answer.

    If mortgage 1 was in arrears they could try to take funds from the sale of property 2.
    If mortgages were up to date then I imagine you wouldn’t have a problem.
    Remember though - the banks are not your friend.



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    #3
    SupaCat95
    Registered Users Posts: 597 ✭✭✭SupaCat95


    Correct answer, go get independent professional advice. Your own solicitor or Financial advisor would be money well spent considering the sum involved. It may or may not be or could it be negotiated?



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    #4
    Purpleeyes
    Registered Users Posts: 3 ✭Purpleeyes


    https://www.boards.ie/discussion/comment/122160765#Comment_122160765

    Thank you!

    Scenario - Property 1 mortgage is up to date (Family home) - Sale agreed

    Property 2 (Investment property) - In arrears and is repossessed and currently on the market for sale by the bank.



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    #5
    Iscreamkone
    Registered Users Posts: 799 ✭✭✭Iscreamkone


    It is very hard to get a lean on your family home. When you sell all bets are off - it’s just money in an account and if they can get their hands on it they will.

    Ideally the investment property would sell first and clear that mortgage.

    If the sale of the investment property won’t pay off that mortgage they will be all over any funds you have from the sale of your family home.

    You may want to postpone selling the family home until the investment property mortgage is cleared.

    100% you need professional advice



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    #6
    Claw Hammer
    Registered Users Posts: 6,179 ✭✭✭Claw Hammer


    Mortgages typically contain an "all sums due clause". You can't sell your home in positive equity and walk off with the money if you owe other monies to the bank.
    You are going to be forced to behave like an adult and pay back money you borrowed.



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    #7
    Purpleeyes
    Registered Users Posts: 3 ✭Purpleeyes


    Thank you all for your helpful comments and guidance! I have just spoken to the bank and the solicitor and they have advised that since the accounts are not cross charged and property 1 was not used as security for property 2, the proceeds from property 1 cannot be used to offset property 2. Property 2 has now been sold by bank (just informed). I shall update this chat for whoever might be interested if anything changes.



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