Hi all,
The recent death of my wife's sister has lead to some major concerns for us for the future of her surviving partner and young child.
I have strongly suggested taking the advice of the engaged solicitor for the following question but I am hoping to get some people's thoughts beforehand to at least know what the likely outcome may be.
The couple had their investment property and their PPOR on the one loan in both names. (When they applied for the loan they stated the PPOR was also an investment property so rental income could be taken into account for servicing the loan). Her partner cannot now service the full loan of around $400k on his self employed income and the small amount of super that has been left to him. He has a buyer for the IP paying around $230k.
The question is this: is there a common procedure for how the existing loan will be treated? The wish is to give the lender only what they need to keep the loan going for the PPOR (purchased for $269k now maybe worth $320k) and dropping the repayments. This is where I see a stumbling block. He is under contract to pay a certain amount each month and therefore would have to refinance to change the contracted repayment I also suspect the contract will have to be changed (requiring the need to refinance) as both names are involved. If he needs to refinance, unfortunately he is in trouble as his income is not anywhere near sufficient to service a loan of around $200k to keep his PPOR. He earns good money but the final figure isn't good after his tax claim.
Has anyone had any experience with what is a very complex matter like this or has any knowledge to indicate what the most likely outcome will be? The partner would dearly love like to keep the property as they both worked very hard to obtain it.
Any thoughts will be greatly appreciated.
Thank you
Bready
The recent death of my wife's sister has lead to some major concerns for us for the future of her surviving partner and young child.
I have strongly suggested taking the advice of the engaged solicitor for the following question but I am hoping to get some people's thoughts beforehand to at least know what the likely outcome may be.
The couple had their investment property and their PPOR on the one loan in both names. (When they applied for the loan they stated the PPOR was also an investment property so rental income could be taken into account for servicing the loan). Her partner cannot now service the full loan of around $400k on his self employed income and the small amount of super that has been left to him. He has a buyer for the IP paying around $230k.
The question is this: is there a common procedure for how the existing loan will be treated? The wish is to give the lender only what they need to keep the loan going for the PPOR (purchased for $269k now maybe worth $320k) and dropping the repayments. This is where I see a stumbling block. He is under contract to pay a certain amount each month and therefore would have to refinance to change the contracted repayment I also suspect the contract will have to be changed (requiring the need to refinance) as both names are involved. If he needs to refinance, unfortunately he is in trouble as his income is not anywhere near sufficient to service a loan of around $200k to keep his PPOR. He earns good money but the final figure isn't good after his tax claim.
Has anyone had any experience with what is a very complex matter like this or has any knowledge to indicate what the most likely outcome will be? The partner would dearly love like to keep the property as they both worked very hard to obtain it.
Any thoughts will be greatly appreciated.
Thank you
Bready