Help with keystart selling or surrendering?

Discussion in 'The Buying & Selling Process' started by Cara55, 24th Feb, 2020.

Join Australia's most dynamic and respected property investment community
  1. Cara55

    Cara55 Member

    Joined:
    24th Feb, 2020
    Posts:
    5
    Location:
    Perth
    Hi,

    I don't know what area to post this, so I'm sorry if it's the wrong part.

    Built the home in 2016 in Baldivis..Perth.. went with keystart total cost $450,000 leant the hard way with keystart.

    Try to make this easy.

    Not long after the house was completed started having major health problems/ lost job
    Went in to hardship many times to get back on track. Got a new job less money and my health became bad again so can't afford the mortgage.

    So In the last 4 years I have been below water and the Mortgage is back to 445,000 replayments $630 weekly!
    the value put the house at $350,000.

    It's heartbeaking to get rid of the house but it's killing me, and will need to rent.
    I'm trying to avoid bankruptcy.

    My question is has anyone surrendered their house to Keystart and if so what were the repayments?

    I understand selling to house myself will give me more then what they would sell it for but I just don't have the mental and physical energy due to my disease.

    I am seeing a financial person (isn't overly helpful) but just wanted advise to anyone who been down that track.

    I hope this makes sense as I just can think..

    thanks for reading and understanding.
     
  2. Toucan

    Toucan Well-Known Member

    Joined:
    18th Mar, 2018
    Posts:
    103
    Location:
    Adelaide
    Hi, not good that you're having all of these challenges thrown your way.

    Is it possible to rent your house out to cover the mortgage and rent somewhere else that's cheaper? I'm not too familiar with what rents are like over there at the moment..

    Failing that, do you have someone you trust that could engage with an agent to get an appraisal on your behalf? And then help with the sale? As it might be better for you financially to go down that road.
     
  3. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,916
    Location:
    Perth, WA
    Why the need to avoid bankruptcy? Maybe that would be a good option.
     
    Lindsay_W likes this.
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    10,004
    Location:
    Perth
    Try and avoid debt consolidation companies as they will charge money and can realistically do no better than you can by going direct to Keystart and negotiating with them.

    There are a few people on here who have had properties in WA (or QLD) that are worth significanly less than they bought them and have needed to either go bankrupt or negotiate with banks to take the property.

    Bankruptcy is sometimes the best option. It won't ruin your life and isn't forever but will take the stress off you and allow you to let go of this noose around your neck.
     
    property world and TMNT like this.
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    10,004
    Location:
    Perth
    To be fair on Keystart it wasn't their fault that prices in Baldivis have dropped and they have allowed you a significant payment breaks and now have an asset on their books which has cost them money. A normal bank may have taken your asset a lot quicker than that.
    I feel for you but it's time to have that conversation with them before they repossess and give you little notice to find a new place
     
  6. Rex

    Rex Well-Known Member

    Joined:
    12th Feb, 2018
    Posts:
    992
    Location:
    Perth
    Do you have any other significant assets and do you plan on needing access to credit in the next few years? If not, bankruptcy could be your best option, since you will otherwise have to pay back $100K debt whilst still losing the house with no benefit to yourself. In declaring bankruptcy you can still keep some savings, your personal/household items and a car to a certain value. Read up on it: What is bankruptcy? | Australian Financial Security Authority

    Financial counsellors are highly oversubscribed in WA at present (as you can imagine) so I'd inform myself of your options since you may not be able to rely on them to do everything in a timely manner. Though certainly follow their advice.
     
  7. Cara55

    Cara55 Member

    Joined:
    24th Feb, 2020
    Posts:
    5
    Location:
    Perth
    I guess it's the stigma behind it.

    I would like the travel before my disease get worst and don't think you can travel in the bankrupt period?
     
  8. Cara55

    Cara55 Member

    Joined:
    24th Feb, 2020
    Posts:
    5
    Location:
    Perth
    Thank you for your help.
     
  9. Cara55

    Cara55 Member

    Joined:
    24th Feb, 2020
    Posts:
    5
    Location:
    Perth
    Hi,

    I completely understand and never blame keystart at all for the area or going with them.

    The thing I blame on them is the way I have been spoken to! I have done everything right and the attitude on case manager is disgusting.

    I have pretty thick skin but when you have a disease that is getting worst and your mental health is horrible they really do push you over the point.

    I have spoken to other people who are with banks that are in a similar situation where they can't afford it but the bank has been accommodating and compassionate.

    Keystart lack communication within their staff and as disorganised.
     
    Westminster likes this.
  10. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    10,004
    Location:
    Perth
    If you are bankrupt then you do need permission to go overseas but as long as you are complying with the terms of your bankruptcy then it can be allowed. They mainly want to ensure that you aren't living the life of Riley as any income over a certain amount does go back to paying off your debts (it's quite generous and sounds like you'd be under this amount)

    Can I travel overseas during bankruptcy? | Australian Financial Security Authority
     
  11. Cara55

    Cara55 Member

    Joined:
    24th Feb, 2020
    Posts:
    5
    Location:
    Perth
    Thank you very much for your help.
    I really appreciate it.