hi, I am new to IP and not sure if my investment will risk my PPOR. Say if I borrow $300k on IP, then later on can't pay the mortgages, Do bank has the right to auction off my PPOR as well or just IP.
and if after auction off my IP and bank only recover A$250k. What will the bank do to recover another A$50k from me?
No as long as the loans arent cross collateralised or cover under an All Monies Clause.
Who is / are the loan / s with ?
Richard Taylor | Australia's leading private lender
No as long as the loans arent cross collateralised or cover under an All Monies Clause.
Who is / are the loan / s with ?
Richard Taylor | Australia's leading private lender
It depends.
If you cannot pay the mortgage the lender will reposses the property and sell it. If there is a short fall they will then come after you. If you cannot or will not pay they can seek a court order to take your property and sell it – including real property.
So eventually they could get at your other property if there is a short fall.
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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