Going to loose deposit

came across someone today who has this scenario (friend of a friend) (not a client of mine in any capacity)..

Bloke didn't use a broker or didn't get any advice from accountant

On 156k salary
Divorce settlement just occurred
Went out and purchased a new owner occ:
$850k contract - purchased privately and unconditional!!!!

Paid 86k deposit
Val came back $800k
Has another loan in application to see if better val comes in, did that via I select online!!!
But basing this on $800k val

Doesn't have funds to complete!
Went and got 38k personal loan
Applied for 3 other 35k personal loans and was declined.
So he was desperate to get funds and kept digging a deeper hole..

46k car loan
2,300 pm in child support.

So:
$166k to complete
$86k paid
$14k in savings left
$38k personal loan
Still short something like $30k..

Don't think he should apply for any more finance or personal loans (even if he could obtain) as his credit file is now a mess..

Then he has to service this loan even if he does manage to settle!

He has $200k in super.
I know "compassionate circumstances" is usually reserved for situations where people are going to loose their home due to not being able to pay mortgage repayments.
However what about in the case of loosing a $90k deposit and not having any future funds to obtain a new family home?

$30k out of super to save loosing $86k deposit is the equation..

I couldn't find any information on this and the chances are slim from what I read on department of human services but, has anyone heard of situations where this could be possible for a purchase rather than a prevention from loosing the home?

No possibility of borrowing from friends or family either. I would say Mick Gatto would be an even worse option..

This bloke is over his head, made a bad choice here and has not had any sound advice, just done want to see him hit rock bottom here... I feel for him..

Any ideas guys?

Cheers

 

Get him to see a broker who can shop the deal to some no credit scoring lenders prior to lodgement. If it's a PPOR and he can service, he may be able to sort it out and the LVR may not be an issue if the val comes back okay.

 

Valuer shop. Order a few vals with different lenders.

My first thought was that if he has enough to get a 90% lend then use a lender that doesn't require a val (maybe ANZ or STG - but the private sale will probably mean they require a full val).

Cheers

Jamie

 

I don't see how he could access super.

 

Can he afford the repayments if he does get through?

 

Maybe attempt to flip it? He may lose less if he can sell prior to settlement.

 

I believe the 800k val was a BOM deal at 94%+LMI

I thought about ANZ too before but given its in LMI territory..

3.8 acre property

 

Semi rural top end priced properties tend to take a long time to sell.
My feeling is that is why the val came in low too..

 

Assume so..

 

Settlement due 12/7 as well to make things worse..

 

Can he sell the car?

 

I know of someone who has accessed super to repay a loan. This person was unemployed and on a disability pension though. Still worth a shot...

 

Wow, bad situation. I saw a guy lose $260k on a commercial property. 2.6m property, he could borrow nothing from mainstream lenders, 8 month ABN as recently sold his business and wife owned a brothel. He assumed that because he had lots of equity he would be fine.

Some people get themselves in so much strife.

 

Borrow from ex wife

 

Over 55?

 

This guy hasn't got a loan to repay yet.

 

Greyghost, does this guy even have an approval yet?

 

I'm interested in the occupation that allows him to make $156,000.

 

Hi @Terry_w
I believe his BOM 800k val is conditional (funds to complete).

The second application is currently in process I think, waiting on val..

This bloke was meant to have met up with a group of us for dinner a couple of months ago, but he did a no show. Could have been in a different position of we had met that might.. Hindsight is 20/20 though I guess.

A real shame..

If the second app comes back at contract price it should work out.

I was just trying to think outside the box for him.
I mentioned borrowing from family or the ex but he brushed that idea off very quickly.

 

Engineering background