House in negative equity, heading back to Australia, advice needed.

[Guest105]

Me too, selling for 400 in boom but sold for 160 recently. City location.

I see nothing wrong with Tilly's value.

The figures are frightening for all those left to cope with huge NE. I have a feeling they must be hundreds if not thousands of people cönsidering emigration as a means to escape this debt with huge reprocussions for the country as a whole.

 

[Bronte]

Just realised something, you probably can't apply for Bankruptcy when you arrive in Oz because part of the terms and conditions of visas etc are probably that you have no financial issues. Unlike the UK when you can arrive any which way.

 

[Bobbyg]

I know of one case recently who approached their situation as follows:
Bought house in 2007 for ~450k (had relocated to Ireland with work). Have since moved back to US. Put house on market for 360 k. House has recently gone sale agreed for 330k with banks consent. Vendor had a tracker mortgage (greater than 400k). Bank accepted the 330k as full and final settlement.
Vendor continued to pay mortgage even after they returned to US, so played ball with the banks and built a decent case that they had done everything possible to secure a purchaser at a very good price. If the bank hadn't agreed to the reduced selling price, then I'm sure next option was to hand back the keys.
Negotiation with the bank was done through a solicitor as far as I know. Most purchasers will run a mile from a sale that involves further negotiation with the bank, but if the price is fair and there's a chance of a good deal, then some buyers may hang in there (depends on the price and house I suppose).
In short, if I was you I would put the house on the market and see if you can get a buyer. Definitely worth trying to build a case where you tried to deal with the problem & the banks before just throwing the keys back. Will only stand to you if they ever do come after you.
Only my tuppence worth !!

Don’t mean to derail this thread but I think this is very interesting. I wonder if it would work for someone who wished to trade up but their house/apartment was in negative equity and they had a tracker. Would the bank be willing to write off the shortfall on the sale.

 

[Greta]

Just realised something, you probably can't apply for Bankruptcy when you arrive in Oz because part of the terms and conditions of visas etc are probably that you have no financial issues. Unlike the UK when you can arrive any which way.

If I understand correctly, OP is Australian, so visas won't apply to her, though it might be relevant for her Irish husband.

I suggested the UK because British bankruptcies are recognized in Ireland as part of EU, and because British bankruptcy law is very lenient, not sure what the situation in Australia is.

 

[cormirl]

Your best bet if you haven´t done already is voluntary surrender the hse and negotiate some sort of settlement thats feasible for you.If they don´t accept it then there is not a whole lot they can do otherwise

 

[munchy]

The figures are frightening for all those left to cope with huge NE. I have a feeling they must be hundreds if not thousands of people cönsidering emigration as a means to escape this debt with huge reprocussions for the country as a whole.

I am starting to think that this may mean that we havent seen the bottom of the market and house prices, and arrears/ defaults, are only set to get worse before they get better. Its all new for many of us - who didnt grow up in recession