thanks guys.

Thanks guys, can't I just transfer the $110,000 funds that are currently in credit on my current PPOR to my offset account? so I can then take the funds out of my offset accuont when I find the new PPOR?

I havent decided yet what the new PPOR will be in future if I can take advantage of the tax portion of my PAYG then I can afford a nicer PPOR which means it'll be our plan to raise the family here. Otherwise if I'm not able to use my taxable income to pay off my IP then my new PPOR will be eventually converted to another IP (depending on my future wealth).

Btw the current PPOR loan is already interest only.

Edit: both properties are/will be in  NSW, Sydney.

sounds good so far, seems like everyone is leaning towards me speaking to the bank and this seems like the best idea, however my lawyer has mentioned that the bank wont even listen to a "no body" like a interested buyer, without having a contract written up which brings me back to square 1, how do i get the banks attention without going through the contractual and settlement fees etc.

by the way I don't know the seller of this house, i don't know why people are referring to him as a friend

Its not as simple as calling the bank unfortunately, how do i get to the right people

okay fair enough, your point is well taken however several lawyers have seen this happen several times without an issue, and my relative has gotten a property less then what was owed to the bank, sorry but its not fairy land its just thinking outside the box…

what id like to know, is how i could get the bank attention, how do i get their YES or NO without having the main contract written up…. i can't simply call them, but how else can i get their attention? maybe some form of a pre-contract contract?

come on people think outside the box

sorry what i meant was that i need some advise in regards to a current situation i am in. Basically, I'm interested in BUYING a property from someone who is behind on his mortgage repayments and is about to loose his house to his bank, (I know they owe their bank more then the offer they've accepted from me)
 
My concern is that if I go ahead with the purchase I risk his bank stepping in during settlement to claim a shortfall, thus loosing over $3000 in fees (house inspection, ordering of governmental searches, local council rates, water rates, land tax searches, stamping of contract etc as well as legal fees)

My solicitor has stated that there is no way to avoid this risk. Id like to know if anyone thinks otherwise and knows of a way to avoid the loss of $3000 in fees, or if anyone has been through a similar circumstance and what their experience was.

NOTE: This is not a mortgagee repossession but a step just before that.

thank you so much for this feedback i might stop my mum from signing up too as she was keen also, may i ask why all the negative vibe towards this? any complete points you guys suggest to watch out for that i can see if these guys do the same?