Help Default notice .....

Hi, We accepted an offer on a block of land that we have had on the market for 2 yrs ..The condition was no 48 hour clause but close to our asking price so we went along with it as we have become desperate to the stage that our mortgage is on hold.... (we actually have 3 properties and all of them morgtaged and now all of them on the market ...one we originally owned and had 100k equity in the block, so then morgaged both to buy us a residental property)..the property was due to settle in oct we filled in the appropriate forms for dispersment of fees come Friday the day of settlement (according to our settle agent). a phone call was made to find out what was happening and the bank informed her that there was a delay but settlement would happen on the monday or possibly tues. Come the monday she phoned our lender and they said it was still not ready perhaps tues or wed, Come wed they said that the valuations came in to low (LVR) for the properties and there would be a short fall of $80,000 and unless we paid that, the settlement wouldnt go thru,after lengthy discussion with the bank they refused to release it they said had it been our other property the one we had the greatest amount of equity in this would not be a problem. In the mean time the people buying our block have filed a default notice against us and we have 10days to act on it basically find 80K and also stuck a caveat on the property...our last resort was to put our residental house on the market and cut our loses of over 1m... we cant afford legal advice have found a free legal service which im contacting tomorrow....Just want to know what happens if we dont find the money what can happen as a result... thanks any advice would be appreciated...:confused:
 
really tough break...

obviously you have nothing else to offer the bank as security?

as far as the default notice goes - there isn't much a buyer can do. To take you to the supreme court to force specific performance will set them back about $150k - very unlikley they will do it (if you were them would you do that? or would you just go find another property??)

This is not advice... if it were me I would tell the buyers you can't settle for reasons x,y,z and that you are very sorry. you will have 8 months of argy bargy before it even goes to mediation.

then you still have a financial problem with the banks. You will need to sell one of the other properties it sounds like. unless you can increase your income somehow to start servicing again?
 
thanks Ausprop no I wouldnt and the people have been advised of our situation and they are not really intersted hence the Caveat. oh and forgot to mention the interest they are charging per day I was told that they are protecting there interest .....they are demanding we pay the legal fees.... Yep lotto is wait im praying for lol....
 
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they are a LONG way from being awarded legal fees. IF they go for specific performance then the interest calculation will be set aside.

I hate the joint form... buyers being awarded punitive interest. what is their loss???

Caveats don't mean a lot.

The Buyers are pretty powerless here. You have told them the facts, now let them go for it - if they dare. I betthey don't
 
of course the other thing is to scrutinise the O+A... has everyone signed for receipt of the joint form? if it was faxed are all pages signed? if it was subject to finance, did they provide unconditional finance for the full amount required and communicate that to you by 4pm on the due date? are all special clauses initialled by all parties? were all special clauses satisfied?
 
of course the other thing is to scrutinise the O+A... has everyone signed for receipt of the joint form? if it was faxed are all pages signed? if it was subject to finance, did they provide unconditional finance for the full amount required and communicate that to you by 4pm on the due date? are all special clauses initialled by all parties? were all special clauses satisfied?

Hi Ausprop. Just be careful. The specific performance is a hard one. I was trying to pull out the contract (another thread) but too hard. You will lose a lot if they insist.
 
Tomorrow I have an appointment with a free lawyer hopefully he can shed some light on the situation as it is well above my head..thanks guys for the advice but im really worried now lol....
 
Hi Ausprop. Just be careful. The specific performance is a hard one. I was trying to pull out the contract (another thread) but too hard. You will lose a lot if they insist.

i have been trying to get someone to perform for nearly 2 years now. $150k in legals and 2 to 3 years is about the norm
 
ouch so may i ask why u havent dropped it? i found out the reasons why they are suing us its all in writing its basically greed and they lost out on a property some time back and the fact she has to live with her mother for a little longer.....and then it came down to the money and the compensation according to her how much is enough!and how do you put a price on it? ....I think they are hoping to get something for nothing in life basically...so it will be off to court we go as i will not have the bank foreclose on me for some body like them, they dont deserve it and they are not taking advantage of this situation.....
 
if your case is strong enough, you are prepared to back yourself and the other side has the ability to deliver up, then why drop it?

hope your buyer doesnt mind living with her mother for a couple more years till this is resolved?
 
If all the proceeds from the sale of the land go to the bank and the land is being sold at market value, then I don't see why the bank has a problem. What is the bank going to do, wait for the land to go up in value whilst charging you interest at default rates? They will never get their money back then.
 
I just would hate to see anybody else been put thru what we are is all ausprop....But im not passing judgement... These people in our case are trying to be compensated for a loss from a previous sale that must have fallen thru they think its there right to take that out on us....as it was clearly stated in her email....in our case its greed and determination unfairness she is allowing hr emotions to come into play im happy to give them the block as we no longer require it but it seems that the universe has other ideas she we shall just ride the storm and see what comes of it my apt is tomorrow so i hope the advice will be valuable... thanks for yr reply...i hope yrs all works out in the end...
 
Ned thats is a question we are yet to have solved, the short fall is 80k there is enough to take form the other property we have but they wont do it... we have spent mumerous hours on the phone and they just tell us they wont do that if we payed the 80k they would release it..... but they approved our mortgage to be put on hold for a further 3mths...in the mean time we are getting sued....the bank ombudsman is really not interested but we are not the only ones there are others and that is suppose to comfort us in some way....NOT....The local radio station in perth was going to take it on or so they said when i spoke to them last friday ...but after two phonecalls to them in regards to them getting out letter they havent bothered ringing us back....so i give up....where are our rights and who is suppose to help us.....Im ashamed to be called an aussie and im ashamed all those poor buggers died in the war for this our country...this world is twisted and bent out of shape everybody sues at the drop of a hat....why not just call us the little america....
 
Ned thats is a question we are yet to have solved, the short fall is 80k there is enough to take form the other property we have but they wont do it... we have spent mumerous hours on the phone and they just tell us they wont do that if we payed the 80k they would release it..... but they approved our mortgage to be put on hold for a further 3mths...in the mean time we are getting sued....the bank ombudsman is really not interested but we are not the only ones there are others and that is suppose to comfort us in some way....NOT....The local radio station in perth was going to take it on or so they said when i spoke to them last friday ...but after two phonecalls to them in regards to them getting out letter they havent bothered ringing us back....so i give up....where are our rights and who is suppose to help us.....Im ashamed to be called an aussie and im ashamed all those poor buggers died in the war for this our country...this world is twisted and bent out of shape everybody sues at the drop of a hat....why not just call us the little america....

Another option is to get a short term loan if you think the sale price is good
 
Why costed you so much? How many court hearings did you have? Just unbelievable

Ah court...

they won't let you near the place for a good 1 to 2 years. Apparantly they are so busy that they figure if they keep everyone away the problem may work itself out. usually the parties burn up their money on lawyers, dont make it to court and hence justice has effectively been served

seriosuly tho... 1 mediation conference, 1 hearing of some sort. anyway I'll shut up now, case is ongoing....
 
Hi Insecure.

What state is the property in?

I guess you have cross collateralised your properties and the remaining ones have dropped in value so the bank won't release the land. Not much you can do there other than to try to challenge the valuations. Banking ombudsman can't help as it is the bank's right - they must retain enough security for the remaining loans.

This is the major danger of crossing loans.

But all that doesn't help you now. Your buyer wants to buy but your cannot settle. This is a breach of the contract. They may terminate the contract or maybe rescind (meaning the contract will be treated as never having existed).

If the contract is terminated, then it ends. There is no future performance and you will be discharged from further obligations. But you may be liable to the other party for damages.

But what damages have they suffered? They will probably just cancel the contract and buy elsewhere. They have not really suffered any loss, so probably won't have much of a claim against you.

Maybe you could also end the contract by mutual agreemet? Offer to pay their conveyancing costs. But get an agreement in writing.

Its their right to lodge a caveat since they have an interest in the property after exchange of contracts. But this right should lapse if they cancel the contract.
 
I guess you have cross collateralised your properties and the remaining ones have dropped in value so the bank won't release the land.

Insecure, can you give us some numbers to work with. What did the valuations come in at and what did you originally pay. Thanks
 
But what damages have they suffered? They will probably just cancel the contract and buy elsewhere. They have not really suffered any loss, so probably won't have much of a claim against you.


The potential purchasers' may have missed out on FHOG boost?


Regards
Sheryn
 
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