I need some creative thinkers out there to help a good friend of mine:
Personal situation:
She's lived in a PPOR in Ipswich QLD for ten years. Her husband lost a battle to cancer last year (http://somersoft.com/forums/showthread.php?t=70910) and she has now returned to her home town in NSW with her young daughter. She has put her Ipswich Queenslander on the market and has recently had an offer which she has accepted. She intends to live with her father in NSW until the sale is completed before searching for a PPOR back in her home town.
Financial situation:
Her and her husband had a fixed interest loan on the Ipswich property which still has 2-3 years left on the fixed term. The property has had an offer of $303k accepted with around $200k left on the loan. Unfortunately her credit union has notified her that an exit fee of $14k will be required to pay out the loan. Since she is now a single parent and is only working part time to allow for her to look after her daughter, and the fact that she hasn't been able to work for over a year with looking after her husband through the final stages of cancer, you can imagine that every cent counts. ...and a $14k exit fee is something that hopefully can be mitigated.
Options?
So what are her options? Im guessing she cant just pay out most of the loan, but keep a nominal amount ticking over in the loan to keep it open for the last 2-3 years of the contract since she is selling the house it is connected to? Would it be a good idea too offer a 6-12 month settlement period with the existing purchasers where they can move in and rent the Ipswich property. This would give her time to find an alternate property in NSW where she can transfer the loan over to and avoid the exit fees? Please, any help with this would be much appreciated!
Cheers
Louise.
Personal situation:
She's lived in a PPOR in Ipswich QLD for ten years. Her husband lost a battle to cancer last year (http://somersoft.com/forums/showthread.php?t=70910) and she has now returned to her home town in NSW with her young daughter. She has put her Ipswich Queenslander on the market and has recently had an offer which she has accepted. She intends to live with her father in NSW until the sale is completed before searching for a PPOR back in her home town.
Financial situation:
Her and her husband had a fixed interest loan on the Ipswich property which still has 2-3 years left on the fixed term. The property has had an offer of $303k accepted with around $200k left on the loan. Unfortunately her credit union has notified her that an exit fee of $14k will be required to pay out the loan. Since she is now a single parent and is only working part time to allow for her to look after her daughter, and the fact that she hasn't been able to work for over a year with looking after her husband through the final stages of cancer, you can imagine that every cent counts. ...and a $14k exit fee is something that hopefully can be mitigated.
Options?
So what are her options? Im guessing she cant just pay out most of the loan, but keep a nominal amount ticking over in the loan to keep it open for the last 2-3 years of the contract since she is selling the house it is connected to? Would it be a good idea too offer a 6-12 month settlement period with the existing purchasers where they can move in and rent the Ipswich property. This would give her time to find an alternate property in NSW where she can transfer the loan over to and avoid the exit fees? Please, any help with this would be much appreciated!
Cheers
Louise.