Hi,
My husband and I have a property in KAndos NSW which was our home for a year and a half. We owe $245,000 on it and its probably worth about $300k at the moment. It will be worth about $500k with a DA approval to subdivide it into the existing house (5 bedrooms) and 4 large building blocks.
In October of 2004 we were approached by my brother-in-law who couldn't finish his investment property. We gave him $20K and said we would help him with his investment and we would split the profit once finished. This house has been a money pit for us and we have been late on most of our payments (we have 6 kids, ps we dont tell the bank that). We are living in an unfinished house with the builder stiffing us for the last $20k that would have finished the house off. My husband and I have roughly put in $60K (I have receipts).
This month my brother-in-law (the big fat loser) got served with papers stating he better come up with either $30K in morgage payments or $496K and payout loan or we will take the house. My husband and I are in a real pickle we have tried to get a loan and we cant because our CRA's are now shot because of this house. How can we either get a loan to pay the bank or get $30K to pay the payments. Then how do we put our name on the title and know exactly whats going on so he doesn't do this again.
We really don't want to lose $60K but if we dont find a solution by Tuesday we are homeless and have lost $60k. My husband is furious with his brother but its done and no use doing the blame game.
Absolutely Desperate HELP Please
Hi Helena
Sounds like you have a little problem. I would suggest you seek legal advice asap, try legal aid.
Have you documented the money you put in with the brother in law? You could probably argue you have an equitable interest in the house, but that won't really help if the bank takes it. They will sell it, and any left over should be divided between the two parties.
You could also argue that you have lent the brother in law money and sue him for that.
It will be very hard for you to get a loan now as you are around 81% LVR. Maybe you could talk to the lender and ask them to give you more time and/or reduce the rapayments or even extend the loan term, or make it IO etc.
Changing titles now will be expensive as you will have to pay stamp duty on your share.
Good luck, and do contact legal aid.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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