In a dire situation - Mining town collapse

Fantastic outcome! I would have assumed bankruptcy was a 99% given for your situation so this is great.

 

Agreed great outcome and hopefully evaporation of stress, thanks for the update @styereye

 

so you were $420,000 short, and negotiated 95% ie $399k

and you paid it off!?!!??

a Big Congrats !!!!! Amazing

 

I paid close to 5% - $20,000.

 

I need to learn to read engrish

 

Amazing result. What a relief for you.

You might be able to set yourself up as one of those debt negotiation experts. I'm seeing a blog and seminar series.

 

Wow, great result

 

I have a friend in similar circumstances. It is borderline whether he can afford to keep making payments on his Northwest rental property and has sold everything else to minimise the debt. After reading this I am encouraging him to speak directly with the bank to do something similar. The problem is, he has a reasonable income so i think he may be stuck for the next 10+ years paying off negative equity. I suppose that is the risk you take. Any suggestions?

 

Does he have other assets? My income is around $100,000 and I didn't have any other assets at the time. They accepted the offer straight away. It was the LMI though, not the bank. The bank was covered for the full shortfall.

 

Also write

 

How much would o e of those debt negotiation companies have charged you? $20k at least to make a few phone calls

 

Wonder if the outcome would have been different if there was no LMI and you had to deal with the lender directly?

 

The company I contacted wanted close to $40,000

 

Thanks for the reply. I am not sure if their is LMI involved. I guess his earnings would be around $150k but not sure. He has no other assets

 

All I can say is FMD!

 

Wow, that's an amazing outcome, well done. And nothing on your credit file? I am in disbelief.

 

Good for you

Someone on PC posted similar scenario but further down the track I believe were sadly not able to achieve your results

This is a valuable thread, thx for sharing it may help potentially people in similar scenario

 

I guess this shows the value of LMI in some of these riskier purchases.

Risk mitigation strategy perhaps?

 

I don't see it this way. You will be dealing with a bank or an LMI company in either case and there is no reason to expect one to be more lenient than the other.

 

Yeah? Ouch! This is a time when you are best off DIY and not trust the "experts". You did well and a lot better than the "negotiators" and without the fee they charge on top.