Forums / Getting Technical / Finance / Finance for persons in Part X arrangement

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of banjo28banjo28
    Participant
    @banjo28
    Join Date: 2004
    Post Count: 2

    Hi!
    I have been in a Part X arrangement for 18mths following a bad debt in business & will make the final payment this month (6 mths ahead of schedule)

    I would appreciate any info on how to approach any particular financial groups with this mark on my CRA and maybe how seriously they veiw a Part X
    in their determination in regard to providing finance specifically for property investment

    Profile photo of picja1picja1
    Member
    @picja1
    Join Date: 2003
    Post Count: 144

    Finance will not be an issue, depending on your deposit, location of property,etc.

    There are lenders who will lend to you while you are currently in a Part 9 or Part 10.

    Max LVR 85%, if providing full financials, 75% LVR if self certifing.

    Contact me any time, for full assesment.

    [email protected]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    As an example, Bluestone Mortgages rates borrowers on the severity of their credit history. If you are bankrupt or in part 9 or 10, you are given the worst rating – ‘BBB’. If you have been discharged from bankruptcy for 1 year or more, you jump up a rung to ‘A’. Discharged more than 2 yrs ago, ‘AA’, more than 3 years ago ‘AAA’. If you have never been bankrupt you are classed as ‘clear’. The worse you credit impairment is the worse the interest rate is, a ‘BBB’ rating can have an interest rate nearly 3% higher than a ‘clear’ rating. Also other tings such as defaults, judgements, arrears etc will affect your rating.

    Rates will also depend on the LVR, the higher the LVR the higher the risk.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of picja1picja1
    Member
    @picja1
    Join Date: 2003
    Post Count: 144

    I think you made a mistake, Terryw.

    “If you are Bankrupt or in a Part 9 or 10, you are given the worst rating.”

    I don’t know of any lender that lends to people that are currently bankrupt?

    I think what Terryw meant to say was; If you are discharged bankrupt or in part 9 or 10 … etc..

    This means, yes, 1 day out of bankruptcy, you can recieve a home loan.

    Also there are other lenders than bluestone that will lend in this situation and depending on the customers needs offer very competitive rates and exit fees etc..

    [email protected]

    Profile photo of xyzzyxyzzy
    Participant
    @xyzzy
    Join Date: 2003
    Post Count: 178

    To do a part 10 does not mean you are bankrupt. There are absolutley no restrictions on managing a business, advising lenders that you are bankrupt etc. that apply if you are a bankrupt expect what you have agreed to!

    You are free to go again … if you can borrow the money

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    Picja. You are right of course. It was just a slip of the tongue! I meant discharged bankrupt.

    Infact, I htink it may even be unlawful for an undischarged bankrupt to borrow money.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of banjo28banjo28
    Participant
    @banjo28
    Join Date: 2004
    Post Count: 2

    quote:


    Finance will not be an issue, depending on your deposit, location of property,etc.

    There are lenders who will lend to you while you are currently in a Part 9 or Part 10.

    Max LVR 85%, if providing full financials, 75% LVR if self certifing.

    Contact me any time, for full assesment.

    [email protected]


    Profile photo of pookiepookie
    Member
    @pookie
    Join Date: 2004
    Post Count: 2

    Hi, first time posting here, hello to all :)

    Justa quick question I feel may belong in this topic (I stand corrected if I am wrong :));

    I currently have an investment unit of which I have borrowed equity and now owe as much as its worth almost. I have found myself in an very bad financial postion due to relationship collapse etc and as such am considering bankruptcy or an alternative.

    I owe approx $100,000 in accumulated personal and Govt debt (HECS etc..), not including the mortgage for my unit.

    I am unsure what to do and I would dearly like to keep my unit since my long-term tenant has been paying it for many years.

    I work casually as a Medical Assistant and am a fulltime Uni student.

    I have 3 cars in my name although one is my 17yr old sons. I own a race car worth approx $25,000 and a crappy commodore worht about $3,000

    other than that I rent a small house and have basic furniture now.

    My main problem is that I maybe receiving my ex-partners share of our family home, the one I currntly rent. She is talking of simply giving it to me to get her off the mortgage.

    I would prefer not to loose it under bankruptcy in a years time or so.

    If anyone has any ideas I would appreciate it :)

    Kindest regards
                Phil

    Profile photo of pookiepookie
    Member
    @pookie
    Join Date: 2004
    Post Count: 2

    p.s. I forgot to clarify that the reason I rent our ex0family home is that it has always been in her name :)  and still is.  Although she does recognise my financial contributions to the mortgage.

    She has no legal claim over my unit due to the way we had our relationship setup :)

    hope that helps.

    Cheers
         Phil

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