Ausprop are you there?

[sparky23]

Ausprop can you help me out with some sales data for Rockingham and Shoalwater for the last few months please? ANZ have decided to do a valuation on the house we sold in Grove st which could cause us some problems as to whether they will allow the sale to go through. If you or anyone else has some data you can email to me that would be fantastic.

Thanks for your help!

Also can I get advice on the time frame considered for the valuations, do they go back 3 months (say August, September, October) or 6 months.

Finally if they don't allow the sale to go through what use will it be if they then can't sell it at a better price? It just means we accrue more debt while they try surely.

 

[AUSPROP...]

just PMd you sparky with a bunch of sales stats.

mortgagees in possession could be scary when they refuse to sell, I have heard of a 3rd hand story of this happening.

 

[sparky23]

Thanks Ausprop - gee you were fast!

At the moment we are just in default not as far being repossessed and I can now clear all outstanding debts but nevertheless they could still stop the sale going through and if the valuations don't come up to scratch I am guessing they can call the loans in?

 

[sparky23]

Thanks for the info thats awesome will they just use the data for all of Shoalwater or break it down into the Anchorage estate and how far back will they go with the data?

 

[AUSPROP...]

not sure... need to speak to a mortgage broker or valuer perhaps? I think 6 months may be the cut off? then tehy can go further to exclude distressed sales etc.

I don't get it... if the bank gets all their money back why would they block the sale? all they care about is getting their money and not appearing on today tonight

oh - are you saying you want to sell one and retain some and thus will they recheck your LVR?

 

[sparky23]

Exactly right! It won't be good enough for the remaining house to cover the amount of debt left over as they will still be looking at only 80% so the numbers won't stack up any more.

From the figures you gave me and also the REIWA figures to the Sep quarter it looks as though if they take enough house sales into account the values could come in around $440,000 as the number of distressed sales seems to be a handful out of the number of sales that went through over the last year. Or do they exclude distressed sales as you mentioned? I thought they included everything.

 

[kph]

sparky,
If you could put a lease to buy tenant in place to boost the cashflow would this help your position?
Could efectively boost the weekly income to around $600 to $650 pw and tenant pays rates/taxes etc.
Its something I am considering on some of these neg geared 'dogs' I am carrying..

Its put in place and managed by a third party operator ( not me) if this is of interest to you

kp

 

[sparky23]

Thanks kph but cashflow will soon be no problem as repayments on everything are now down to about 2/3 each month to what they were & I think they will be down to 1/3 once these cuts have stabilised. So the position for us now is much less desperate. In actual fact if this sale does not now proceed it will be a good thing as we can keep the house and not have to give it away any more!

The problem though is that the bank indicated verbally there would be no problem initially so we accepted the offer, although I did write in subject to our bank accepting the offer. So if the bank now won't hand over the title we may have problems from the purchaser. Also they are now assessing us all over again so they might decide to call in the loans anyway or repossess both or whatever it is that they do.

I figured these are the options:

1. Not release the title which gets them no money paid off the debt
2. Not release the title and demand all of their money back
3. Release the title accepting that the value to cover the outstanding debt remains in the second property but we are at around 90% instead of 80%
4. Repossess

Does anyone have any experience of this and if so which way did the bank jump?

 

[INVSTOR]

sparky,
If you could put a lease to buy tenant in place to boost the cashflow would this help your position?
Could efectively boost the weekly income to around $600 to $650 pw and tenant pays rates/taxes etc.
Its something I am considering on some of these neg geared 'dogs' I am carrying..

Its put in place and managed by a third party operator ( not me) if this is of interest to you

kp

If you go ahead could you let us know how you went with it? I'm considering going that way also with one property.

 

[kph]

Will do. Just going through the process now with the docs and authorities.
Bad time of the year to be doing much of anything, but still keen to try this one..

 

[INVSTOR]

Thanks KP, I just came across your response. Regards, Linda