From: Denise Macadam
Hello All,
I read the post from Les on the 18th with great interest as i was in a similar situation myself. I am selling my PPR and moving into the Ip due to redundancy, currently doing some renos to my home and will do the same to the Ip when we move in, reno and on sell. The Ip is almost vacant and I can only offer the next lease for three months (due to my moving into it) so little chance for rental, have also reduced the rent for short term letting in the hope of making it a more attractive proposition. The mortgage on this is $1650. and then I have the PPR mortgage, so things are very tight until I sell and need a bit of breathing space money wise. So, watching all the "Money" shows etc i did what was always advised, wrote to the lender on Friday and explained the situation.
Asked for details on how I can go about reducing or delaying payment on one or both mortgages for a short time until my house is on the market. Explained I would walk away with $300,000 which pays out my IP loan. Was actually thinking off holding about $35,000 for extensions etc but it would still leave a very small mortgage, certainly manageable on my husbands wage if I am still not employed by then. So armed with the info from Les, (most helpful) I did the sums and was ready to talk to someone about my options. Received a call Monday from the credit manager at head office to say they had received my letter, thank you for advising us - I thought this sounds good he is going to help me out a little. I asked what I needed to do and who i should see. "No one" he said - sorry, nothing we can do for you, keep paying full amount on both loans until you sell your house. Oh said I, if i could keep paying full amounts on both why would I be contacting you in the first place, after more conversation he said due to the nature of the loans we cant help you. One a line of credit against PPR - the other a fixed I&P loan against the Ip, I couldn't see how this was different from probably the majority of loans on issue. I advised the bank valuation on both homes came in at over $800,000 10 months ago, and I owed $460,000. "Oh really", sorry cant help you at all, due to the nature of the loans, there is nothing we can do. I advised there was something I could do - as soon as I move I would be looking for another lender, that i was very disappointed with their approach. So i guess that is another lesson, when looking for finance, look at the worst case scenario and see how flexible the lender is in times such as these as they can happen when you really least expect it. I will be renovating and selling as my "job" but i sure as hell wont be using my current Building Society in Brisbane a day longer than necessary.
Another "learning experience" I just wish they didn't have so many dollar signs in front of them!
Looking forward to hearing your outcome Les,
Denise
Hello All,
I read the post from Les on the 18th with great interest as i was in a similar situation myself. I am selling my PPR and moving into the Ip due to redundancy, currently doing some renos to my home and will do the same to the Ip when we move in, reno and on sell. The Ip is almost vacant and I can only offer the next lease for three months (due to my moving into it) so little chance for rental, have also reduced the rent for short term letting in the hope of making it a more attractive proposition. The mortgage on this is $1650. and then I have the PPR mortgage, so things are very tight until I sell and need a bit of breathing space money wise. So, watching all the "Money" shows etc i did what was always advised, wrote to the lender on Friday and explained the situation.
Asked for details on how I can go about reducing or delaying payment on one or both mortgages for a short time until my house is on the market. Explained I would walk away with $300,000 which pays out my IP loan. Was actually thinking off holding about $35,000 for extensions etc but it would still leave a very small mortgage, certainly manageable on my husbands wage if I am still not employed by then. So armed with the info from Les, (most helpful) I did the sums and was ready to talk to someone about my options. Received a call Monday from the credit manager at head office to say they had received my letter, thank you for advising us - I thought this sounds good he is going to help me out a little. I asked what I needed to do and who i should see. "No one" he said - sorry, nothing we can do for you, keep paying full amount on both loans until you sell your house. Oh said I, if i could keep paying full amounts on both why would I be contacting you in the first place, after more conversation he said due to the nature of the loans we cant help you. One a line of credit against PPR - the other a fixed I&P loan against the Ip, I couldn't see how this was different from probably the majority of loans on issue. I advised the bank valuation on both homes came in at over $800,000 10 months ago, and I owed $460,000. "Oh really", sorry cant help you at all, due to the nature of the loans, there is nothing we can do. I advised there was something I could do - as soon as I move I would be looking for another lender, that i was very disappointed with their approach. So i guess that is another lesson, when looking for finance, look at the worst case scenario and see how flexible the lender is in times such as these as they can happen when you really least expect it. I will be renovating and selling as my "job" but i sure as hell wont be using my current Building Society in Brisbane a day longer than necessary.
Another "learning experience" I just wish they didn't have so many dollar signs in front of them!
Looking forward to hearing your outcome Les,
Denise
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