Hi, just wondering if i default on a investment property mortgage, does the lender have any rights to my personal property? namely our family home (not used as security) Im doing everything to avoid defaulting but if it comes to it, what do i do? let the lender take the investment property and thats the end of it, or can they also take my home if the investment property doesn't cover the mortgage?
Why won't you sell? they only foreclose the IP and demand you sell family home to pay for it, I believe. if I'm the bank I would.
Short answer is yes - any shortfall can be treated like any other civil debt if the bank decides to pursue it further.
Even if they don't pursue you for any outstanding money (unlikely) then there will most probably be a big black mark on your credit history even if they don't make you bankrupt. Can you sell the IP? Marg
Not directly under the mortgage, but if there is a shortfall they can then get a judgment against you and then go other other property. If you are going down get some legal advice early on rather than at the last minute.
IP and home are with different banks, original sale was for $460k mortgage was 350K property is now worth $180k, this in 12 months, area Gladstone. if i can sell it, i wont cover the mortgage.
i would rather not default, but cant even get renters in at the moment and the area is looking bleek with little hope of a recovery.
where is this IP? Contact the bank ASAP to discuss alternate payment schedule. But the issue is also whether there's hope of recovery in the near future. You may be burning more money by holding onto it.
You're not the only one having difficulty selling. Read: Trying to sell in Gladstone - zero interest. Will it be better post election?
yeah its not good, im relying on tax benefits running at a loss for the interim to cover it but i would love to get rid of it.
Have a Jewish stocktake and clam the insurance. "I'm sorry to hear about your fire." "Sshh it's tomorrow"
would this be an option ( i will contact the lender and ask) sell the IP $180k re mortgage balance of $170 and pay off, will those payments still be a tax deduction?
The interest on the loan could still be deductible depending on the circumstances. Tax Tip 71: Deduction of interest after assets sold https://propertychat.com.au/communi...deduction-of-interest-after-assets-sold.5245/
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