Looking after the parents

Hello to you all, my parents are aging and unfortunately they have a bluestone loan, they would like to be able to sell their property, downsize and have a little bit of money left over to enjoy the last few years of their lives. Alas they have the burden of the break fee hanging over them. Can someone please help me help them, who do I get in touch with to try and fix this problem so they can live the rest of their lives without this stress.

 

What's the problem exactly? Large break fees for a fixed loan or something?

What sort of solution are you hoping to get?

 

They are looking at paying a large break fee if they decide to sell their property, I have read other forums about this. Yes it is in there contract which is a reverse mortgage, without getting into to much detail they are not ready for aged care but do need to downsize.

 

Is there an issue with just paying the fee and downsizing though?

 

They lose everything

 

Maybe post the numbers?

 

That sounds a bit dramatic. What do you mean "everything"? How much is the fee? And how much equity do they have?

 

I feel that this is not the right forum for my enquiry they have been told that they cannot sell there house that they must stay there till they die or move into an aged care facility. I have read that some people on this forum have got in touch with the shadow treasurer that is all I want how to get in contact with him/her.

 

Shadow treasurer has no power, your local member, financial services ombudsman may be of more use.

 

Thank you

 

Told by who?

 

This couldn't be correct

 

Someone from bluestone rang them, unfortunately they did not get the name, that person told them they cannot sell their house and that will have to pay the fee.

 

Well isn't that a bit different from what you said earlier?

Your story hasn't made complete sense though. Why not just pay the fee and sell the house? Can you give us some more details and figures, and so we can figure out what exactly your parents want to do?

 

They can sell the house if the proceeds are used to pay the debt to the lender out.

Perhaps you are saying that the proceeds will not cover the debt?

 

Just reading some reviews on this lender. One reviewer said the following about an employee there:

"I have no idea how she go to bed at night, 1000's of people curse her 24/7."

lol. That's curse overload. There's a lot of venom out there.

 

Strange how none of the brokers on this site have mentioned them? Lender of 2nd last resort?

@Redom @Jamie Moore @Richard Taylor @Property Twins @Jess Peletier

 

Perhaps you can post the whole contract online, also include the letter they wrote to them (with the names crossed out of course) so we can advise.

 

Sounds like a reverse mortgage with the interest rate fixed for life, and early repayment unless on death or going into care incurs a huge break fee. Especially with rates as low as they are. The devil is in the contract details but its not hard to imagine the lender saying based on actuarial tables the borrower will live for another 20 years so we are justified in calculating the break fee as if its a 20 year fixed rate loan.