You're right, this is quite a predicament! The lenders will chase you for their money, court fees, baliff fees, legal fees, and interest. Don't even think of doing a runner!!! You may be faced with bankruptcy also if you take this route. The insolvency service will look at your properties, including your main residence, as a whole, so it's probably your very last resort. You will also have a nightmare of a time trying to remortgage subsequently, even if you're left with any properties to remortgage.

I suggest you sit down with an independent financial adviser without further delay and go through everything with a fine toothcombe. In the meantime, you may wish to enforce your tenants agreement with your tenant and evict them if at all possible - if its through a management company then get them to do the work or if its through the council it should be pretty straightforward as well.

Good luck.

Brian

I find myself in quite a predicament.

I am a homeowner who currently has three buy-to-let properties. Of them, two are let and managable. One however, has proven to be nothing but problematic. I have a mortgage with TMB on it and in the current climate, am almost defintely in negative equity. The property was bought in my early days as a budding investor and in my naivity, I got attracted to a 'no deposit required' purchase in 2005 which of course meant I paid well over the odds for a property in an area up north I knew little about. There is £138,000 outstanding on the interest only mortgage and also approx £1000 in outstanding service charges.

Though the property is let, the tenant is a nightmare who now has four months rent outstanding. He is the second of this type I have had to endure. With other businesses of mine suffering, I'm finding it increasingly difficult to maintain my mortgage payments let alone the service charges. My thoughts have now turned to repossession.

My main worries are how this would affect my existing properties and credit rating. I know in the case of the latter, it will damage it severely but can they come after my other properties? If I do decide that its my only course of action, then what is the best way to handle it? I have been told that the lender can chase me for up to six years but that if I dont acknowledge their letters and requests, they automatically have to drop any claims against me after this period?

I would greatly appreciate any advise or tips you may have on this as it is causing me sleepless nights!!

Thanks