My sister has lived in her Bverely Hills Sydney house for about 15 years but it about to be reposessed by the mortgage company because the long-time absent husband can`t/won`t pay.
My sister has been offered a re-finance deal called `negative gearing` which entails my sister moving out with her three children, become an `investor` in her own property and then rent it out to somebody else. In return the refinance company – not the current mortgage company – will pay the mortgage for a maximum of 12 months then force a sale regardless.
The arrangement sounds very odd to me and nothing similar exisits here in the UK.
Sister would clearly prefer to stay but her options & time are limited.
If any kind soul can offer sound advice I can pass to my sister, I would be very grateful
myjamfactory 16.3.06 (about eleven hours behind you)ToolsParticipant@toolsJoin Date: 2003Post Count: 363
I don’t understand the purpose of the arrangement if they are going to sell regardless of what happens in 12 months time.Are they hoping thatt the value will rise in the next year??
No, I don`t fully understand it either even after a protracted call with my sister earlier today. She mentioned a company name, Fox something,, that sounds like it is a loan company, apparantly a nation-wide company with TV ads. I think, I will get more details within tweleve hours. The re-fiance deal is 2 points higher than the current lend-rate i.e. 9% for the 12 months plus a bigger rake of the sale proceeds. I need to find FOX..? and read the website to understand if the deal is legit and if commonplace in Oz which I doubt somehow. My sister has enough on her plate and I dont want getting suckered by sharks
myjamfactory 16.3.05 11.42amseanjMember@seanjJoin Date: 2006Post Count: 6
It sounds like the company is Fox Symes and they are a finance company. Part of their business deals with people and or businesses in financial distress but I don’t really know how they do it.
Not sure about the deal that has been proposed here either..crusherParticipant@crusherJoin Date: 2002Post Count: 186
I am heartbroken when I hear about people with children having to move out of a family home. I hope this information is useful to you…..
There are few finance companies talking about offering a shared equity mortgage product. This is where a component of the mortgage (up to 50% with some) is given a very low or even 0% interest rate. This can significantly reduce the monthly repayments, hopefully to the affordable level. The catch is that you have to pay the lender a % of the capital growth of your property upon sale (but who cares if you were going to lose the property anyway). Plus in the product I have seen it’s only a percentage of capital growth from when you take up the deal (not the whole capital growth). I am currently working out ways I can use it as part of my investment strategy.
You could give these guys a call but I know there are others out there as well at least thinking about offering this type of deal. http://www.affiance.com.au/
I think Sydney is the main place they are looking at offering this because it is very reliable as far as capital gains go (especially in the Hills District)
http://www.freepropertyhelp.com.aucrusherParticipant@crusherJoin Date: 2002Post Count: 186
WARNING, WARNING, WARNING….
I just found this information about Fox Symes
Excellent, your input is invaluable.
Fox-Symes is the company and the warning you advise is sufficiently recent to ring alarm bells.
I`m maling my sister by the minute and have invited her to register and logon to this forum.
I appreciate your time & effort.
myjamfactory 16.3.05 12.29Mortgage HunterParticipant@mortgage-hunterJoin Date: 2003Post Count: 3,781
I would be very very cautious about getting involved with this sort of deal.
Your sister may well be best off cutting her losses and taking whatever lump sum is left after the sale of her home and use it to start again.
She needs to avoid going bankrupt if she wants to buy again tho.
If she is desperate to keep her place then have her call a decent broker who can run some fugures and see if there is any conventional means open to her. If she has been defaulting on her loan then there are few lenders who will take over the debt. And those that will – will charge accordingly.
It is a crying shame it has got this far without her taking action. Now her repayment history is not 100% it will make things much harder.
Sorry to hear about this – is a common marriage breakup scenario.
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.Fast LaneMember@fast-laneJoin Date: 2004Post Count: 527
She could apply to APRA to have some of her Super released to help pay what’s outstanding, if she has any. She should take this up with her lender if she hasn’t already done so.
If she’s been in the place for 15 years she should have some significant equity in the property. If she can avoid bankruptcy then she might get through it without too much nasty damage.
Good Luck with it…FL
Fast Lane- The poster formerly known as g7
Again, thanks to you for this advice. I have now established the product Fox Symes are suggesting is basically a refinance package. I need to read their T & C`s to work out if this course is right for my sister.
I will post the progress (or otherwise) on this forum to see if it looks a good/bad deal to you`local` experts.
myjamfactory 16.3.06 – 09.19grossrealisationMember@grossrealisationJoin Date: 2005Post Count: 1,031
couple of things
first get your sister to talk to the salvation army they are at hurtsville they will get a planner and a broker to negotiate what she can do and tell her not to get into any refinance deal unless she has spoken to them or a broker.
second get her to talk to the lender she has and do that know they will also give her some options that she can tell the salvo’s
next that to the dept of social security and they also may have a program that can help.
you are not going to do much 11,000ks away but i might as I’m in ashfield which is under 15ks and if she needs help get her to email me and I will meet with her and see what we can do.
this is not an open ended lawrence will come and help you but if the lady need help then I think I can get that help, if she can’t do it on her own.
pm me but the best is [email protected] not saying I can save her but will give my best shot.
here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
i beleive my sister has made contact with you already and your advice has been very useful, thanks again to you and this forum. Little by little my sister is forming a strategy to go forward with good quality knowledge offered by the writers here.
myajmfactory 16.3.06 13.29pm