Possible forclosure.
- Thread starter battler
- Start date
http://www.fido.asic.gov.au/fido/fi...o+meet+your+mortgage+repayments??openDocument
Above link might help from the fido site.
and from the Treasury website:
http://www.treasurer.gov.au/Display...009/077.htm&pageID=003&min=wms&Year=&DocType=
"Building Societies, Credit Unions and Retail Banks Sign Up to Help Borrowers in Distress
Today I announce that all 144 retail banks, building societies and credit unions have signed up to the Government's Principles to assist borrowers who are experiencing financial difficulty as a result of the global recession.
These Principles will ensure that families finding it tough to paying off their mortgage in the face of the global recession are fairly treated by their bank, building society or credit union.
This follows on from an agreement by the big four Australian banks to sign up to these principles in April. All members of the Association of Building Societies and Credit Unions (ABACUS) and all retail members of the Australian Bankers' Association (ABA) with a focus in the mortgage market are now signatories to the Principles.
The Principles provide support and assistance for borrowers struggling to meet their mortgage repayments due to temporary unemployment or other factors related to the global recession.
While Australia is weathering the global recession better than most countries, we are not immune to its impacts, including an expected rise in unemployment.
The Rudd Government is committed to working to reduce the impact of the global recession on Australians. This agreement means that financial institutions will be able to offer a range of options to assist mortgagees who are facing financial hardship.
Options for assisting borrowers in distress include:
postponement for up to 12 months the dates on which payments are due under a mortgage contract (with interest to be capitalised into the loan);
an extension of the period of the contract and a reduction in the amount of each payment due under the contract;
interest-only breaks on loan repayments; and
fee waivers."
Hope this helps and all the best to your friend.
Above link might help from the fido site.
and from the Treasury website:
http://www.treasurer.gov.au/Display...009/077.htm&pageID=003&min=wms&Year=&DocType=
"Building Societies, Credit Unions and Retail Banks Sign Up to Help Borrowers in Distress
Today I announce that all 144 retail banks, building societies and credit unions have signed up to the Government's Principles to assist borrowers who are experiencing financial difficulty as a result of the global recession.
These Principles will ensure that families finding it tough to paying off their mortgage in the face of the global recession are fairly treated by their bank, building society or credit union.
This follows on from an agreement by the big four Australian banks to sign up to these principles in April. All members of the Association of Building Societies and Credit Unions (ABACUS) and all retail members of the Australian Bankers' Association (ABA) with a focus in the mortgage market are now signatories to the Principles.
The Principles provide support and assistance for borrowers struggling to meet their mortgage repayments due to temporary unemployment or other factors related to the global recession.
While Australia is weathering the global recession better than most countries, we are not immune to its impacts, including an expected rise in unemployment.
The Rudd Government is committed to working to reduce the impact of the global recession on Australians. This agreement means that financial institutions will be able to offer a range of options to assist mortgagees who are facing financial hardship.
Options for assisting borrowers in distress include:
postponement for up to 12 months the dates on which payments are due under a mortgage contract (with interest to be capitalised into the loan);
an extension of the period of the contract and a reduction in the amount of each payment due under the contract;
interest-only breaks on loan repayments; and
fee waivers."
Hope this helps and all the best to your friend.
Thankyou, I'll pass it on.
He is a young bloke giving me a hand with my reno and discussed it today, he's really had a bad run of luck with a wife having to have surgery for a tumor in her head as well. As I understand he has to come up with 3k by the 13th /9, and he has $2700 and I prepayed him today so he should be ok, but I fear this is only a short term solution.
I don't know how best to guide him.
Thanks.
The very, very first thing he MUST do is make an appointment and front up to the bank and talk to them. If he has the money needed then get him to pay it immediately, don't wait until the last minute. If he can't pay it all then pay as much as he can as soon as he can. He has to convince the bank he is serious about getting back on track as quickly as possible, and is treating his loan repayments as a priority.
If he has temporary problems he may be able to arrange to make reduced payments for a couple of months. But if he can negotiate a payment plan then he MUST stick to it.
Foreclosure is usually a last resort, and despite lurid publicity is never seen as a desirable outcome.
Marg
If he has temporary problems he may be able to arrange to make reduced payments for a couple of months. But if he can negotiate a payment plan then he MUST stick to it.
Foreclosure is usually a last resort, and despite lurid publicity is never seen as a desirable outcome.
Marg
Thanks Marg, that's a good move, if he pays it now rather than the 13th, it certainly shows he's trying. I'll stir him up tommorow.
Thanks.
The other option he has is getting a letter from the lender and apply
to release some funds from his super.
Although it is not worth doing this if he has no means to keep paying
his loan afterwards.
to release some funds from his super.
Although it is not worth doing this if he has no means to keep paying
his loan afterwards.
Does this also apply to investment properties and investors or is it just for your PPOR? I followed those 2 links you provided but found no mention of this.
While the legislation says 12 months, I think most lenders really give you 3-6 then start putting pressure on you. Most have teams set up for this so Marg's advice to contact the bank is good advice indeed.
I realise it may be socially unacceptable to say this but its a good example why people should protect themselves with good personal insurance. while not knowing the circumstances around it if the wife had a tumour a trauma policy might have paid out a sum where they wouldnt be in the situation they're in.
I realise it may be socially unacceptable to say this but its a good example why people should protect themselves with good personal insurance. while not knowing the circumstances around it if the wife had a tumour a trauma policy might have paid out a sum where they wouldnt be in the situation they're in.
I had a very traumatic experience last year - 3+ months of back and forth to the bank/doctor/accountant to try and meet their trauma policy application requirements.
Thanks for all the suggestions, I haven't seen him today, he's working elsewhere, but will speak with him asap.
Thanks
How much did you prepay him and is he working for you today?
hi battler
my idea would be to
first find out which bank
next find out and book an appointment with that banks assett management group
next work out a payment scheme
and then freeze the loan and pay as it goes
you can get this done professionally by a debt resolution group in your area
my idea would be to
first find out which bank
next find out and book an appointment with that banks assett management group
next work out a payment scheme
and then freeze the loan and pay as it goes
you can get this done professionally by a debt resolution group in your area
That's good to hear. Reading also that the wife had a brain tumor and he did not turn up yesterday made me wonder.
The reason he didn't turn up is because I suggested he take what ever work he could, and we would do mine on days if he had no other work, so that mine was extra income not instead of.
I have passed on all suggestions, and that time is of the essence, and to contact the bank asap to see what may be worked out.
Whilst I'm not privy to all the details, it appears he has extended an existing mortgage, which is higher than the saleable value of the home at this time unfortunatly.
Thankyou for your input.
I have passed on all suggestions, and that time is of the essence, and to contact the bank asap to see what may be worked out.
Whilst I'm not privy to all the details, it appears he has extended an existing mortgage, which is higher than the saleable value of the home at this time unfortunatly.
Thankyou for your input.
