VIC Caveat on unit debt out of control

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9 January 2020
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I have foolishly taken out a 2nd mortgage on my property which I have stopped making repayments on, resulting in the total amount just about tripling to 80K and continuing to do so. It is classified as a business loan although I never gave them an ABN. The monthly repayments are about $1750.


I did not have a business. I used the money for personal issues.


In addition, I have my regularmortgage which I have also fallen drastically behind on as well as several other smaller loans/obligations. I have completely buried my head in the sand regarding all this. However, I can arrange to manage these other debts, even my regular mortgage.


It is the 2nd mortgage that is killing me and eating the little equity that I have in my small, dilapidated unit. And I do not want to lose my unit. I do not know what to do because I cannot afford the repayments and I am locked into them for years now.


Is ridding myself of this 2nd mortgage a matter you can assist with?
 

Nige123

Active Member
30 April 2020
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try renegotiate the terms with the second mortgage lender. Tell them that if they don't flex you will declare bankruptcy. If they don't assist, hand the keys to the bank and then either bankrupt or negotiate with your creditors... all the best
 

Rod

Lawyer
LawTap Verified
27 May 2014
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Suspect you need legal advice and financial advice.

We can help with the legal advice.