Lookin for some short term caveat or 2nd morgtage just to get back on track. Have 2 properties 1 rental 1residential i bring in $1050after tax 230 per wk rent my Wife clears $1730 per ftnight just a few things got a head of us have good equity in residential appraisel {real estate agent ) was 430k to 450 k 330k owing rental approx value 270k, 219k owing.
Catching up allour arrears just need some help to get it all tidied up quickly, the cause of our situation was the overruns and extras of construction of residential property, the purchase of new vehicle at the same time as one of the doctors at my wifes surgery leaving her wage then dropped from 1730 to 1320 per fortnight, A new doctor has now came to the surgery which took 12 mnths and as of the last 8 weeks her wage has been back to its proper $1730
while it is back to normal it is still taking a while to catch up a burst hot water service 2 weeks ago at the rental property didn't help.
So if any one can help or has advise please let me know once weve caught up all our arrears bendigo will look to refinance us getting everything cleaned up and repayments reduced
2nd mortgages/ caveat loans in cases like this are very expensive. Could be 10% or more on a second and even 5% per month in some cases on a caveat loan.
The main thing is keeping your lender up to date with your circumstances. I've seen people struggle in arrears for two years with major banks and never get defaulted or foreclosed. The banks will assess you as a retain or exit category. Retain means they will assist you to get through. Exit, well…
Assuming you keep everyone on side and keep your credit rating clean. Most lenders will ask for 6 months statements when you refinance: – therefore you need to keep your nose clean before you can refinance.
Alternatively look at someone like Liberty Financial (through a broker). They can approve with arrears etc as long as you can prove you are now back on track.
Note: – if the funds are for personal use e.g. consumer debt, second and caveat lending might not be an option. Investment debt is a little easier.
Hope this helps. Good luck…
Hi chas
If caveat or 2nd mortgage finance isn't available, you may rectify the situation by selling the IP with vendor finance (VF). A VF sale should generate positive cash flow at three points, i.e:
1. The upfront deposit the new VF buyers pays. Our experience shows this can range anywhere from $15K to $60K and can include the FHOG
2. It should be possible to structure the sale so the property generates approximately $500 per month positive cash, for the life of the VF arrangement
3. The back end profit. This is the difference between what the new VF buyer owes you when they sell or refinance and what you owe to your lender.We call this a "negative2positive" process and it's a great tool for re-structuring out of a tight situation and getting your relationship with your lender back into good standing.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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