What's the process here? I'm guessing its probably different state to state but thought I'd ask. But how long can it all take? Found out last night a partners good friend has just this week been dragged to court by the council due to unpaid rates no idea how far behind (one would assume 6months+), apparently 3 months behind on home loan also. They are too far gone to recover from this I would say, 2 car loans, personal loan for a non profitable business etc etc. They have pretty much dug their own hole. Have used "financial hardship" for their home loan previously. One of her other friends partners is a chartered accountant and set them up for free with a financial adviser that specialises in thus type of thing....they didn't show up to the appointment. I could go on and on with their bad financial decisions. I honestly am not too concerned for them it is more the fact they have 2 young kids 3yo and a 1 year old and could soon be homeless. They don't seem to be too fazed by it all.
Well if it doesn't phase them good for them. I just hope that they pay the penalty for any dumb decisions. As for bad luck. I am very sympathetic for that
It depends. The Bank could apply for a Sale or Seizure Order. That would allow them to sell the house themselves. I don't know how long they usually last for but I imagine at least a couple of months.
Best they try to sell up the house before being forced to - reduce the costs incurred so they can reduce the debts down (and have cash left over if possible). It's not the end of the world and they won't be homeless, worst case they will have to rent and work their way back again. If theres unpaid council rates at court, that's usually a year + overdue, so they've been behind for a long while.
Unfortunately it's hard to help people who won't help themselves. If they've refused financial counselling there might not be much you can do. Bit of a (limited) overview of the process here https://www.moneysmart.gov.au/manag...-paying-your-mortgage/behind-on-your-mortgage but it might vary by state, I'm not sure. A property lawyer should know. I think the bank may need to take them to court.
This is what happened with the last IP I bought in Western Australia. The previous owner had a business and used the house to secure the lease for the business. The business failed and was sold and the owner got behind on the loan repayments. The bank took them to court and successfully applied for a Sale or Seizure Order. The owner sold the house and paid out all debts from the proceeds. I understand there was a small shortfall they will have to pay back over time.
Thanks for the links and pointers all. There is no way in hell I plan on helping them, as I said I am more concerned for the kids and that they are pro active in what they do so they don't actually end up homeless for the kids sake. They just seem so meh about it all and not taking it seriously enough, with this going on they are going on holiday to airlie beach in a couple weeks. My other half suggested perhaps they should cancel, to be told not going to happen because they would lose their deposit on accommodation. That's on top of a 3 week holiday they have booked towards end of year.
