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WA Property Sold for under Debt Amount - Debt Help Options?

Discussion in 'Debt and Bankruptcy Law Forum' started by Sioux, 22 July 2015.

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  1. Sioux

    Sioux Member

    22 July 2015
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    I ran into trouble with a commercial property as I lost my tenant, due to a slump in the economy of the town. I maintained a high level of communication with the lender during this time and after exhausting all efforts to sell, I voluntarily relinquished the property back to the lender. The valuation of this property had dropped 420k in 3 years, leaving its valuation 200k below the debt amount - the property was passed in at auction. Then they sold it by negotiation to one of the bidders - this has left an unsecured amount of 260k.

    I have another property that I live in and run a business from. This has also dropped in value. Last valued at 670k the mortgage loan amount against this property is 570k. These properties are not co-collateralised - they stand alone, though I did miss 3 payments on this property at the peak time of my financial crisis, I have paid that money back, and have not missed a payment in a year and a half.

    The assistant manager of the collections team from the lender has said that they cannot enforce on the property I have been left with as the properties stand alone....though they are with the same lender. It will be 6 weeks until settlement of the other property and negotiations will begin on how to deal with the unsecured debt amount. I have been unable to refinance with another lender.

    What are the options available to me with such a large amount of money ( debt help)?

    Any advice greatly appreciated.
  2. Sophea

    Sophea Well-Known Member

    16 April 2014
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    Hi Sioux,

    To be honest I am not sure what options you have as regards debt consolidation etc. You would need to speak with an expert on financial matters to get some help there. Your legal options are more in the extreme range of bankruptcy or personal insolvency agreements. Let us know if you need more specific advice on either of those two options.

    Short of those more extreme options however, there is some good advice on this website as to how to manage debt: Free Debt Help | Know Your Rights

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