crossed loans, in arrears

C

cape21

Hi All,
I hope someone can help me.
I currently have 7 investment properties, between 3 lenders. 3 IPs are crossed and we are in arrears by about $16K. I have a signed COS on one house to reduce debt, but bank has now valued remaining properties and LVR has increased to 93%, from 80%. They will not release the security property until LVR is 80% for remaining houses. We have no hope of making further repayments on the loan as it is and I have advised them of that.
We thought we were doing the right thing by selling a house to reduce the debt which still remains less than the current value.
My question is where do we stand legally with the purchaser if we pull out of the deal and then what is the process of the bank taking possession of the 3 houses. We have other houses with another bank including our PPOR. Should I get legal advice? I would be grateful for your advice.
 
cape21 said:
Hi All,
I hope someone can help me.
I currently have 7 investment properties, between 3 lenders. 3 IPs are crossed and we are in arrears by about $16K. I have a signed COS on one house to reduce debt, but bank has now valued remaining properties and LVR has increased to 93%, from 80%. They will not release the security property until LVR is 80% for remaining houses. We have no hope of making further repayments on the loan as it is and I have advised them of that.
We thought we were doing the right thing by selling a house to reduce the debt which still remains less than the current value.
My question is where do we stand legally with the purchaser if we pull out of the deal and then what is the process of the bank taking possession of the 3 houses. We have other houses with another bank including our PPOR. Should I get legal advice? I would be grateful for your advice.
Click to expand...

Ouch...............

Id sit with a broker quick smart to see if there is some form of rescue mission.

What you have encountered is one of the hassly things with XCOLL, and as is usual, you dont know its a problem until its problem :confused:

By all means seek legal advice, but dont let the options of a credit restructure go unchecked

ta
rolf
 
Sit down with the bank and offer to sell the entire package? Presumably they will get all of their money back, you will be left with some crumbs and can start again.
 
boomtown said:
Sit down with the bank and offer to sell the entire package? Presumably they will get all of their money back, you will be left with some crumbs and can start again.
Click to expand...

As drastic as that sounds, this may be a really good option to protect your credit file from more serious damage.

If your file is currently still ok, it could be more important to protect your file for the future, and take a moderate bath.

ta
rolf
 
ok, you had purchased 7 houses at 80% lend, so presumably you came up with 20% + costs.
Can we have background on rough purchase costs and locations.
 
Thanks all, We have been trying to sell these 3 houses, this COS is the first one. I don't care if I end up with no crumbs, just want to get rid of the debt.
We have had all our IPs for some 4-5 years now, so purchase costs are irrelevant now.
 
cape21 said:
Thanks all, We have been trying to sell these 3 houses, this COS is the first one. I don't care if I end up with no crumbs, just want to get rid of the debt.
We have had all our IPs for some 4-5 years now, so purchase costs are irrelevant now.
Click to expand...

Only Sort of irrelevant as it looks like you had half a mill to get into these 7 properties
 
This happened to a friend of mine. He went and sold one property only to find out the bank would not release it.

He went bankrupt.

I would suggest you sit down with a broker immediately. At the same time start the process of selling one property (at least) that is not cross collateralised (if any equity).

Let this be a lesson to all those crossers out there.
 
Terry_w said:
Let this be a lesson to all those crossers out there.
Click to expand...

Once a week on average I have the discussion...............but my banker said you brokers are just scare mongers..............

I have 2 stories like yours Terry, in one case a fellow that had net worth of several mill..........


ta

rolf
 
cape21 said:
Hi All,
I hope someone can help me.
I currently have 7 investment properties, between 3 lenders. 3 IPs are crossed and we are in arrears by about $16K. I have a signed COS on one house to reduce debt, but bank has now valued remaining properties and LVR has increased to 93%, from 80%. They will not release the security property until LVR is 80% for remaining houses. We have no hope of making further repayments on the loan as it is and I have advised them of that.
We thought we were doing the right thing by selling a house to reduce the debt which still remains less than the current value.
My question is where do we stand legally with the purchaser if we pull out of the deal and then what is the process of the bank taking possession of the 3 houses. We have other houses with another bank including our PPOR. Should I get legal advice? I would be grateful for your advice.
Click to expand...

Hi Cape,

Sounds tricky. I'd be seeing a broker asap - they may be able to examine your situation and work a way round it all. They can probably help you negotiate with the banks too. Lots of good brokers on the forum here to choose from. Perhaps start with those who have answered your thread.

All the best with this. Obviously something has gone wrong - job loss, etc.


Regards Jason.
 
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