PaulandNic

Bankruptcy it is then! ...

JAJ

It doesn't sound to me like you've negotiated at all, or at least not very well. But it all depends on your financial situation and if you really have no other money and no income, and are willing to lose the house, you can use to sort out the problem, bankruptcy may be the least worst solution.

At least that way you get to start again at zero instead of having a mountain of debt, although being a bankrupt or former bankrupt may have a lot of consequences in the long term.

Find a counsellor locally who understands bankruptcy/insolvency issues in your state and talk through the different options. There may be other things you can do, short of bankruptcy, to force your creditors to accept less than 100% in full and final settlement.

jad n rich

If you want some quick easy income.

There should be exchange students arriving soon at some QLD high schools. Our neighbour has had them the past 2 years, room and food, she gets $285 a week each. Shes taking 3 this year.

I have found them to be quiet considerate people to live next door to, much better than the house owner herself. plus they are always out, only in OZ for a year, they do stuff almost every weekend and school holiday.

just an idea

PaulandNic

On what grounds can you make such a statement? ... Just from me saying i've negotiated with the bank?

I told them my OH just got the sack for no reason after 2.5 years of employment with the company. Can't get another job, and I earn enough to cover the rest of the bills, her wage covered the mortgage!

They asked me how much I could pay, and I said nothing, and we settled on $500pm, which I can't pay.

Please tell me how I could 'negotiate' better as i'll certainly give it a shot!

spottydog

The good thing to aim for is a reduced interest rate as that will reduce the payments (or the increase in debt) rather than just a reduction in payment amount.

Bankruptcy really should be considered as a last resort, it would affect many aspects of your life for years to come. Have you spoken to centrelink to to see if there is anything you can claim as to be honest if you can't afford $500pm mortgage you aren't going to be able to afford $500pm rent (and trying to find a rental if bankrupt could be very difficult).

As the other poster said consider renting rooms to overseas student, a friend at my work did it for a while and made quite a bit out of it whilst not hearing a word from the girl staying with her.

JAMFC

I'm sorry to hear you're in this situation. No advice, sorry...

PaulandNic

The mortgage is $3,000pm, and with 2 x wages it was getting paid, but since 50% of our income has now gone, yeah $500pm is a struggle.

OH won't be out of work forever, and is looking / applying daily, but at the same time there isn't any work out there and she won't earn the money she was on anyway.

The house HAS to go, it's whether we sell and end up with $20k odd debt, or go bankrupt and have a clean slate. Ok, no credit for 7 years, but wouldn't be a bad thing TBH.

PaulandNic

I spoke to the lady who dealt with my mortgage at the bank, and she's gonna make some calls tomorrow morn and get back to me. She wasn't too impressed with how the bank has treated me so far, so gonna see what she can do.

Don't hold too much hope TBH.

Oh and also spoke to me boss this arvo as he's right in the know with the economy and stuff, and he reckons I should sell for whatever I can NOW as VERY SOON the market's gonna crash big time! Leave it a year and the house will be worth 50% was his words.

Ok, take some of that with a pinch, but he's normally right!

Hmmmm

spottydog

Bankruptcy doesn't just affect your credit rating, it can affect job opportunities, insurance, utilities and even finding a place to live.

Definitely take professional advice before you even consider it.

Bix

No real knowledge of this to offer you advice Paul but sorry it's happening mate.

PaulandNic

I spoke to the Financial Industry Bureau this afternoon and yeah I was told all this. Even phone or leccy provider could ask for deposit cos of being a bankrupt. TBH part of me thinks i'd be better off living the "if you don't have the money, you don't buy' lifestyle as we can be bad with credit ... ... but at the same time a credit card can be handy for emergencies!

Def gonna rent from now on as for me it's $1000pw to buy, $500pw to rent and TBH we don't feel it's worth buying anymore. We'll be quids in renting and might even be able to go out for a meal here and there again ...

Prob for the best mate TBH. Will miss this house for sure as it was all we ever wanted, but at the same time having 0 disposable income isn't good.

One thing we've learned is NO POOL on next place. Not worthy of the agg or expense unless you have young kids, as they'll use it daily. This way with teens the pool got used for prob a month of the year, and even then only at weekends ...lol

Apartment living in 5 years, just gotta get out of this mess for now,

Andrew Williams

Hi

Do you have superannuation?

I am obviously not fully aware of your situation but this could be worth looking at http://www.apra.gov.au/superannuatio...n-benefits.cfm



Regards

Andy

PaulandNic

Hi Andy,

Yes I do. I might have to dip into it for medical grounds. Didn't realise or have heard anyone say about for mortgage arrears.

Head's foggy as, but can't work out if applicable or not:

Mortgage assistance

To prevent your home from being sold by the lender with whom you have the home’s mortgage.

This ground does not include rent, or making payment on a mortgage:

for which you expect to have difficulty paying in the future (but are not yet in arrears);
for which you are in arrears, but not to the extent that the lender has decided to sell;
for which one of your dependants, other family member or friend is liable; or
that is for a second or investment property.


http://www.apra.gov.au/superannuatio...n-benefits.cfm

I've only paid for a few years, but could still be enough to help.

Good call, cheers ...

IvanM

Dipping into super will attract a tax bill.

sonlymewalter

Sorry to hear this mate. I know what it's like to lose your job and worry about mortgage payments. Like you say jobs are disposable in Aus and the GFC hasn't helped

Good luck with moving forward mate