Mother made a big mistake. Can anyone offer advice?

So my mum went and emotionally bought another house before she sold the one she was in.
She was told by realestate agent her current property was worth 1.1 to 1.2 mill if developers wanted itfor the 1 acre of land.

Silly her made a offer of 1.2mill and was accepted with 5 months settlement.

The bank said ok as long as the figures were same for swsp over.

I asked did she get it subject to finance or subject to her current property selling for x amount.
She said no.
Well i said how stupid what if it doesnt sell for top amount.
She said dont be negative and i said just being realistic and covering your backside lol. Well i got hang up on.

2 months later the auction got cancelled due to only 1 registered buyer who didnt want to come up high enough.
Apparently the bank only values the house at 900k so people having trouble with finances.

Back to a closed date sale for 3 weeks.
(Dont know how thats going to help really)
Then **** hits the fan i say.

To make things worse the estate agentis saying the only way out is to sell my dads house to make up the difference and he only passed a 2 months ago and she not ready to deal with any of that yet.

Any advice is appeciated?
Is there a way out due to financial hardship due to being on a measly income protection payment topped up by centerlink?

 

Bridging finance is she services? (sounds like no) Family guarantor?

Private lender if there is sufficient security / structure? (wont be cheap)

 

Dont understand any of that?
Can you explain

She doesn't have enough money to service another mortgage

 

What income does she have? Does her income service a new loan? (Withholding the question of why she would buy if the answer is no)
What is her capital position? What assets does she have? What debts does she have? If she sold all those debts would that fund the new purchase?

The way out is she loses a deposit.... not ideal

 

Tell her to go see a lawyer.

 

House she is in bank says only worth 900 but realestate agent says 1.1mil
Dad house thats only half renovated. agent says 600 but who really knows.

She combine mortgage on both of 400k remaining and has income of 40k from income protection and centerlink

 

What state?

 

If you mother has a mortgage of only 400k and two houses worth far more each, then the solution is likely to involve selling a house. I'm not sure what the problem is.

You mother should seek legal and financial advice.

 

Victoria

 

Dads house is practically unlivable atm.
So only alternative is the house shes on but i think there is to.much of a.difference from what there she can get for her current house and what she has bought for

 

How many houses does your mother currently own?

 

2
They were.seperated but.not divorce so mum got control of everything when he died

 

does that include the one you just wrote about?

 

Sorry for the loss of your father.
Does your mother currently own two houses, and want to buy a third?

 

Sorry she has the house she in now and dads house.
Has the new.house.pending. which would be 3 but then.she.will sell the ones shes.in

 

Ah, well, you will need legal advice regardless.
However, her options are likely:
a) cancel the contract on the 3rd house (give up deposit and may need to pay compensation - talk to a property lawyer)
b) or sell one, or both of the houses she owns
Tell your mother to get legal advice in future before signing any contracts.
I suggest your mother sees a financial counsellor through Centrelink as well. And/ or pays for financial advise from a licenced advisor.
This problem should be able to be fixed with the help of a lawyer.

 

Thanks for all the advice

 

Selling Houses Australia?