We currently have tenants in our house that we are paying off. The rent we charge does not cover our repayments, by a few hundred dollars a month.
I have had our house valued, it is worth $20k less than what we currently owe on it. We have only had it 2 years. I know the market is really slow for sellers at the moment in that area. I know of ppl who have been trying to sell for more than 5 years.
So we can't sell & atm, we can't afford to meet the repayments.
Has anyone any advice to share on what we should do? Ideally we would like to keep the house until the market picks up then sell, which realistically could take years. I'm ready to just tell the bank to take it, its too stressful & I just don't want to deal with it but that will affect our credit rating, which is not that good atm anyway as we are really struggling financially. We have expired our 'interest only payments' & are back to full payments, the bank wont go back to interest only, which we couldnt afford either.We have been paying the rent money we get for the house straight to the bank. Please, any advice would be very appreciated!!!!
Can't afford house repayments
Can't afford house repayments
Posted in:
Relationships & Marriage, Money
6 Replies
I forgot to mention, we live interstate 3000km away from the house, so moving back in is not an option for us.
Obviously I don't know what the rent is on the house, but is there a reason you couldn't give notice to the tenants that it's going up a bit?
But I would call the bank again and explain the situation. I find banks are normally the most reasonable when it comes to organising hardship plans. As long as you communicate with them and at least pay them something, they're generally happy. Maybe you could consider putting the rent up and try getting the bank to agree to going back to interest only payments?
Hope you work things out soon :)
Could you change banks and find one that has an interest only payment? What is your living situation now? Are u living in your own home or renting?
We are renting atm & live 3000km away from the house we have tenants in. We lived in it for 2 years before moving due to employment.
I would put the rent up. If on a lease you have to give 60 days notice and can only go up a reasonable amount. But it all helps. Try re financing with a different bank see if you can get lower repayments
Go and see a financial advisor, your bank should have one that you can see free of charge. Also contact a good mortgage broker and get them to find you a better deal.