An offer after 1st home open

Can't you increase the LVR on the IP you still have and use the proceeds to pay the debt? Would be a lower interest rate

 

The unfortunate fact of life was that you had 2 loans secured against the unit you've sold. The bank has called in the second loan because it will no longer have the security of the unit to manage it's risk of you not paying it.
I hope your broker has pointed out to you as well that a secured loan (like the old one against the unit) generally has a much lower interest rate than an unsecured personal loan. The interest rate can often be twice the rate and as it's over a shorter time period (3-5 yrs) the payments are much higher as well.
I'm pretty sure your other IPs have no equity in them as they are worth less than when you bought them so you are going to have to deal with this personal loan as best you can.
I hope your serviceability will stretch to getting the personal loan approved.

Note to others playing along at home: always consider what is secured against a property when looking at selling. In your mind you "know" the LOC etc is being used for another IP but it is not secured against the other IP so it will need to be paid out or security transferred to another property if they have available equity/security.

 

Hi. Nope. I’m too highly geared. There’s no equity

 

Yep. I screwed up and now still paying for it.

Yes my other two have negative equity so I don’t have the option of selling them as I’d lose money on them.

Mum said that she will help me with the repayments.

I had an awful night tossing and turning and had nightmares.

I’m really not sure if I can service this new personal loan without my parents help so thank god for that. I’m starting to see how people become homeless…go bankrupt. Actually I’m hoping I’ll be able to qualify for it because if I don’t Mum will have to draw some money from her super so the sale can go through otherwise I’m scared to think what would happen. The bank could go after my ppor.

Anyhow I’ll keep my spirits up. There’s worse things in life. I’ll just have to work hard at paying this new loan off over the next five years and Mum and dad will help me to keep my head above water.

 

Look at the end result you are midway through sorting this out. You are midway to being free from all this stress. So you are already a winner in my books.

 

Thanks. Yep. Just a few more years and I’ll see the light at the end of the tunnel Feeling hopeful. It’s sure to fly by

 

Yep. I definitely made the right decision by selling. I was going under. I just need to get through this patch for the new few years and then in ten years time I’ll have lots more equity and rents will have gone up.

Glad at least I’m still reasonably young at 46 and can and will come back from this.

 

My dad often says exactly that . Doesn't make it any less frustrating at times

He also says when people make plans for years ahead, god laughs.

 

That's so sad. While I know investment information is meant to be a numbers game, without emotions, it's so hard not to feel horrible when you hear of things that have gone so wrong.

I really hope things get better for you.

 

Thanks. I’ll be alright. It’ll only make me stronger.

 

Can you talk to the bank calling on the loan? Can they give you a new (expensive) unsecured loan to cover the shortfall?

If I was say... a rather large financial institution and just happened to be under the media spotlight at the moment for all the naughty things I'd done.....I wouldn't want any more bad PR.

Just saying...

 

Hmm @hammer has a good point. Banks are in much more “negotiable “ position today

 

How about cashing in some long service leave if you have any left?

 

My bet is its already been cashed out, and is the mentioned $10,000 APK has access to as her own money to put to the shortfall.

pinkboy

 

Any updates Alex?

 

90 days since the signing on the dotted line!

Cmon give us an update !!
We want to see some good news!!!!

 

After all the advice and genuine support that people gave so generously when you were feeling all ‘at sea’ and stressed, I think it’s a bit mean not to get back to us like you said you would.

 

There’s nothing more to say.

Check my super thread. That thread shows how things ended for me. That’s why I never posted an update in this one because I created a new topic.

Anyhow I do appreciate everyone’s help and said many times how appreciative I was. I don’t want to talk anymore about it anymore now.