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7 days to vacate!!! need some help fast

Discussion in 'Real Estate' started by Adamzski, 5th Mar, 2008.

  1. Adamzski

    Adamzski Member

    Joined:
    10th Jan, 2008
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    Location:
    Sydney
    Im about 12k behind on PPOR, I have 7 days to vacate, just got the letter and my seven days is up within 2 days. How can I delay this? I have a tenant that will take the unit strait away at $420 per week signing a 12 month lease.

    Im talking to the bank first thing in the morning and Im not sure what angle to put on it.

    The bank will take a hit on the sale and it is not in there best intrests to forclose (In my view anyway), the loan amount owing is 402k the would be lucky to get 370k in a quick sale. there is strata of 5k owing, no council rates paid in 12 months, repairs of aprox 3k needed to unit. they should lose around 60k on this with no prospects of recovering the money (I have no assets or super). should I tell the bank all this? should I claim to have never recieved and letters?

    What i have going for me is the tennant that will sign a lease tommorow if possable. 6 months ago I got behind by 4 months then paid 20k in a 30 day period. If they can give me 30 days I can get the loan back in order. can get them about 4k within a few days.

    Cheers, thanks for any advice
     
  2. The Stig

    The Stig Well-Known Member

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    Location:
    Central Coast NSW
    Gee. That sucks.

    Sign up the tenant as fast as possible if you can.
    Make sure you put a clause in the there to make sure the agreement is null and void if the bank wants vacant possession.

    Also remember, the bank may just want to minimise their losses so they may not care if they lose 60k, because they may think the loss could be 120k if they wait longer.

    Cheers,
    The Stig.
     
  3. TryHard

    TryHard Well-Known Member

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    Not trying to be a downer, but if you look at it from the bank's position they will assess the risk of continuing to have funds exposed to someone who has ignored their correspondence and allowed the asset over which they have security to fall into disrepair. Given the record number of foreclosures you might just be another number to them now.

    I'd put on your best suit for your meeting with the bank and take a written plan to them to show them exactly how you intend to fix the arrears and then service the ongoing debt. They will be looking for your ability to pay rent while still topping up any expenses on the loan if it is to become an IP. If you can't convince them you have that ability, I would say prospects are bleak. They aren't going to want the hassle of evicting a tenant in an even worse market down the track, versus booting you out now, sadly :(

    You might be able to show some some tax benefits once its an IP which help the situation. You'll have to come up with some logical explanation why you were, ahem, vague enough to ignore their past warnings. While you have the suit on I'd also suggest you go see the Body Corporate and Council to explain you intend to pay them their dues as well, or you're just as likely to get the council trying to sell it out from under you for arrears of rates.

    Good luck !
     
  4. crc_error

    crc_error The Rule of 72

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    I would make a appointment to see the bank in person, and present to them a written plan on how your going to fix this.

    Depends on the bank, some banks are keener to close you up than others. Usually the main bank are happier to negotiate, however the smaller RAMS type banks close you up ASAP.

    but I think you have left it to late, you should not have ignored their previous correspondence. They don't care if you 'claim' not to have got it. Ignorance isn't a excuse.
     
  5. crc_error

    crc_error The Rule of 72

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  6. Adamzski

    Adamzski Member

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    Location:
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    Thanks for the replies, yes talking to them with the angle of how much they will lose is not a good idea I think!
    I was able to tell them I would move with my parents and have it rented out within weeks. Have aranged to pay them the 12k within 2 weeks, I should be able to. Another payment falls due a week later after that and they will requier that to get it out of default so Im hoping to come up with the 12k and then negotiate this part. It is a big bank and im certain I would have lost the place by now if I was with a small lender. There pretty good, even after getting a valuer out last time they gave me another chance.
     
  7. Billv

    Billv Getting there

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    Adamzski

    The bank won't lose any money because the difference between the mortgage and the sale price will come from the mortgage insurer.
    The mortgage insurer then will be hunting you down forever
    and will try to get that money from you.

    Are your parents able to lend you any money?
    Trying to keep it is not a bad thing but we often get too emotional about such things.
    You should consider the long term holding costs.
    Is it worth keeping?
    The interest alone will be $300/w and then you will have rates, maintenance, strate fees etc.

    You should really ask yourself.
    Can you afford it and even if you can do you really want to keep it?

    How old are you and do you have any other assets?

    Good luck
     
  8. Adamzski

    Adamzski Member

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    The bank has the mortgage insurance with a division of themselves but yeah its probably insured by a third party in some way.

    My whole family is broke with no assets, so no loans there.
    Yeah im weighing it up, I have a pretty good software development biz and recently bought a fish and chips shop thats getting close to making profit so I might just concentrate my cash on these for a while. Unit would cost $500 extra per week over the rent and I cant see property in southern sydney growing that much in the next 2 years. Rents are high but I would need 6% pa just to get slightly in front.

    Unit is in my gf's name, no assets or income. So I am thinking we should let them take it and we can build up some funds while she drip feeds them the shortfall. How hard do these mortgage insurance guys go? would they bankrupt her fast? Im guessing they would want to recover there money in a 2 year period max.
     
  9. Billv

    Billv Getting there

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  10. Adamzski

    Adamzski Member

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    10th Jan, 2008
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    Location:
    Sydney
    Its now 2 full months since my 7 days to vacate letter and they have still not recieved a cent.

    Unit has been leased out for good rent to good tennants, bank does not know this.

    I made an agreement to pay them 6 k 22 days ago and then catch up the loan over 6 months. I just transfered them the 6k now and am pretty posative that I can get through this.

    My advise to anyone in this situation would be to get onto the banking ombusman very close to the time the bank will start legal procedings then dont answer your phone for a month or two hehe

    Does anyone know of a good financial planner that knows property?, one that does not make money only from pushing clients into managed funds? Im willing to pay decent money.
     
  11. TryHard

    TryHard Well-Known Member

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    Adamszki - sounds like you have a fairly 'adversarial' attitude to the bank providing other people's money to help you realise a dream. I hope you do indeed get through this, and so does the bank, given any loss they make might impact other customers which probably include a lot of people on this forum. Hopefully your efforts on your business interests will allow you to catch up on the commitments for your foray into property investment.
    Cheers
     
  12. Thudd

    Thudd Well-Known Member

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    I'll post my experience in here in case someone finds it at a later date.

    When I went shopping for my first home loan I did a little social experiment. I drew up charts and spreadsheets detailing the amount I wanted to borrow, the effects of different interest rates and loan types, amortisations over 10 and 20 year periods, etc etc. Then I'd make an appointment with the bank to go in an ask for a home loan.

    In every case, when I walked in and said "I'd like a loan for $XXX" the bank would disinterestedly trot out their worst for me and best for them product and present that as the only choice. I would then whip out my presentation and say that these are the products I'm interested in and here's my calculations, and in every case the lender would immediately change their tune when they realised I wasn't just an average mug and might have some idea what I was talking about. They'd become friendlier, more accomodating, willing to listen and negotiate.

    My point being, if you walk into a bank with some pre-prepared facts and figures then you will get their attention and bring them at least partly on side. Whether that be trying to buy a new home or save an existing one, if you give them something to work with then it seems they'll work with you, if you just rock up and act like a mug they'll treat you like one.
     
    Last edited by a moderator: 8th May, 2008
  13. AsxBroker

    AsxBroker Well-Known Member

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    Location:
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    I do agree with Thudd.

    The easier you make it for a bank to give you something you want, the more they'll bend over to give you what you ask for.

    If you wander in vaguely without a clue the number of variables are massive.

    If you wander in knowing what you want to achieve, the staff will have a clearer idea which product/s best meets your needs.

    Cheers,

    Dan