NSW Debt - Can Selling House Stop Bank from Repossessing the Property?

[nic3113]

We have a business debt which we haven't been able to pay off yet because we are paying off another debt. Can putting your house up for sale stop another bank from repossessing it?

I've been told by an advisor that by submitting a form 6 selling my house on the proviso that upon sale of the house the debt is paid out in full. Neither of the debts are house debts, they were both business debts that we are paying off.

Any opinions would be helpful. Thanks.

 

[settle]

Yes putting the house for sale will show the bank you are being proactive in resolving your debts

But honestly this is the last resort, you don't need to do this

We have managed and we do negotiate with banks to reduce your debts without the need to sale assets, it all depends on your circumstances

We recently got a business loan from $563k reduced to $205k with a major bank, they write off the balance and client kept the house attached to the business loan

 

[Tim W]

Start by talking to your lenders.
Much depends on the nature of the loans and if and how the house is a security for anything.

 

[nic3113]

Start by talking to your lenders.
Much depends on the nature of the loans and if and how the house is a security for anything.

Thanks for your reply Tim really appreciate the help...The loan is 80k that was an unsecured truck loan. The truck was voluntarily repossessed and auctioned, and the 80 is the difference. We have a tax debt that has gone from 39k to 20k in the last 6 months that we are paying off as a priority and an over draft of 100k that is secured against the house (35 %) that we are slowly reducing. we have enough equity in the house to be in front by 100k after sale of the house and payment of all debts. This is not what we want to do . We really just need more time to get rid of the tax debt and then we can start making in roads on the other debts. Esanda is getting impatient with us, we check in twice a week and we are currently negotiating to re finance with three different institutions. Last Friday Esanda advised that they are handing us off to a collections agency on Tuesday. If you have recommendations on how to proceed they would be very much appreciated.

 

[nic3113]

Yes putting the house for sale will show the bank you are being proactive in resolving your debts

But honestly this is the last resort, you don't need to do this

We have managed and we do negotiate with banks to reduce your debts without the need to sale assets, it all depends on your circumstances

We recently got a business loan from $563k reduced to $205k with a major bank, they write off the balance and client kept the house attached to the business loan

Thanks for your reply, I didn't know banks wrote off debt like that. Following are the details of our situation ...The loan is 80k that was an unsecured truck loan. The truck was voluntarily repossessed and auctioned, and the 80 is the difference. We have a tax debt that has gone from 39k to 20k in the last 6 months that we are paying off as a priority and an over draft of 100k that is secured against the house (35 %) that we are slowly reducing. We have enough equity in the house to be in front by 100k after sale of the house and payment of all debts. This is not what we want to do . We really just need more time to get rid of the tax debt and then we can start making in roads on the other debts. Esanda is getting impatient with us, we check in twice a week and we are currently negotiating to re finance with three different institutions. Last Friday Esanda advised that they are handing us off to a collections agency on Tuesday. We feel we are running out of time and we have no idea what the best course of action is. Any suggestions would be much appreciated.

 

[settle]

Honestly you are not running out of time, the debt going to a collections agency don't feel is a bad thing u will have the uphand to negotiate a full and final settlement and pay it over instalments, the tax debt is easily dealt with on a 2 year plan with ato of approx $835 per mth, and as a tax agent I can tell u u can get the interest and penalties remitted