Hi all,
Hoping i could ask for a little help. I got into a bad investment property and i finding it hard to get out.
Basically i have a mortgage for $103,000
I own half of the property which is worth $200,000.
The other half owner went gauruntor on my loan as that was the only way to get finance.
The other owner is prepared to pay me $100,000 to get rid of my mortgage, so i am only loosing about $3000 plus the $700 loan termination get out fee.The problem is i overextended myself so i ended up getting behind with payments. Which has ruined my credit rating. So now i can’t get a loan for the extra $3000. The problem is though every month the interest keeps getting added and i can’t save $3000 at the same time as paying the interest.
Is there any way to have the other woner pay the $100 grand to my loan, then sign over ownership, subject to payment of the outstanding balance? This would stop the monthly interest in the meantime???
I’m only 24 and this was my first property purchase/investment so i have learned my lesson. Just wanna get out and start planning/saving for that good investment.
Any thoughts much appreciated.
Regards,
wlan0
are you paying principle payments as you might be able to talk to bank and change to interest only loan. Maybe able to extend loan out .
maybe you could do some improvements to property like a carport or a garage a bit of paint and increase the value of property and recapitalise loan. need to talk to bank about this option.
If other owner takes over your half CGT could be liable and stamp duty.
Maybe you could ask other owner if you can sell him 20% of your share and be tenants in common rather than joint owners just to get you out of trouble. Maybe you could try to sell 30% to another investor and change ownership to tenants in common.
I am not sure if this is possible you probably need to check with a solicitor.Thanks for your post. But unfortunately i have to get out completely. Pay off all my other debt (credit cards) then get back to investing next year.
Ok so what i thought could work is a 60 day settlement. She pays me $100,000 then i pay the rest in the following 60 days. But her bank won’t have that. They want full title the minute they pay their money. And my bank wont release the title till they get their full amount.
Can i sell her 95% with the tennant in common thing?
how do i get out of this…?
So you own a property jointly, and want to sell your half to the other party?
It is possible for your partner to pay you the $100,000, into your loan, if he has hte cash, and then transfer the title later, but it is unlikely they will agree to this.
I think you may just have to ask someone else to lend you the short fall for a short period, maybe even the partner could do this. ie pay $100,000 for your share plus lend you $3000 for the shortfall?
Terryw
Discover Home Loans
Parramatta
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Definately i would say ask the other partner to lend it to u.
Tell them to charge u a high interest rate (say 18%)short term to make it worth while for them.Otherwise u r losing a heck of a lot more.
or ask yr parents ! Or can u sell something?Like yr car and downsize?We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
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