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Overseas mortgage crippling me financially
owen magnier
Posted: 19 December 2012 12:53:35(UTC)
#1

Joined: 19/12/2012(UTC)
Posts: 1

I have a condo overseas thats causing me a lot of stress and financial hardship. Im paying a whopping $2300 per month at around 12pc interest rate, outstanding debt of around 115k and will terminate in 73 months time. The current value is around 150k which may jump to around 200k whenever they get the building finished, could be 6, 12 months time. Its a financing deal with the owner of the complex. Currently Im having real trouble with my tenant, hasnt paid the rent and who knows when he will leave so dealing with that legally. Ive tried to get the high interest reduced to no avail. So Im wondering whats the best decision for me to take at this stage. Im barely making ends meet here and facing 6 years of hardship ahead. Would I be better off just walking or riding out the tenant situation to see what happens. Appreciate very much any feedback
paul kaye
Posted: 22 December 2012 08:55:22(UTC)
#2

Joined: 21/08/2009(UTC)
Posts: 14

Was thanked: 5 time(s) in 2 post(s)
wow I feel for you,
you need a solicitor to get your tenant out asap and consider getting the property on holiday rental asap,there are many sites that will manage this for you.
Have you a property in uk? will it be possible to remortgage this and raise as much as possible to reduce or pay off your condo mortgage,

If no property to remortgage,consider bank loan here,rates can be under 6% use that money to reduce your condo.
consider selling the condo? cut your losses?
This may have not helped you,but at least someone cares
Paul
Mark Frantzen
Posted: 22 December 2012 19:01:08(UTC)
#4

Joined: 23/09/2012(UTC)
Posts: 3

Was thanked: 1 time(s) in 1 post(s)
You don't mention what country your property is in. Step on is to get the tenant out. Regardless, every jurisdiction has landlord and tenant laws and you are entitled to give notice to vacate for non payment of rent. Do a bit of googling to inform yourself. No tenant is better than a non paying tenant who has probably no respect for your property anyway.

Step 2 is to weigh the number of options available to you.

a) find a new and paying tenant to mitigate your monthly expenses
b) remortgage at a lower rate if possible (provided you are not tied into your current rate)
c) is short term vacation rental a possibility? There are agencies for this
d) could you move into the place yourself?
e) get out and take your loss

Victoria, BC, Canada
Alan Selwood
Posted: 19 March 2013 12:36:24(UTC)
#6

Joined: 17/12/2011(UTC)
Posts: 857

Thanks: 104 times
Was thanked: 1072 time(s) in 450 post(s)
owen magnier;17257 wrote:
I have a condo overseas thats causing me a lot of stress and financial hardship. Im paying a whopping $2300 per month at around 12pc interest rate, outstanding debt of around 115k and will terminate in 73 months time. The current value is around 150k which may jump to around 200k whenever they get the building finished, could be 6, 12 months time. Its a financing deal with the owner of the complex. Currently Im having real trouble with my tenant, hasnt paid the rent and who knows when he will leave so dealing with that legally. Ive tried to get the high interest reduced to no avail. So Im wondering whats the best decision for me to take at this stage. Im barely making ends meet here and facing 6 years of hardship ahead. Would I be better off just walking or riding out the tenant situation to see what happens. Appreciate very much any feedback


That deal at 12% is seriously bad news. What did you get in return for agreeing to such a high rate? A large reduction off the price? If not, the deal was designed from the start to make a big profit for the developer at your expense.
Before walking away from the whole thing, speak to a lawyer who is an expert in the laws of that jurisdiction - you may find that in walking away you lose the property but still have to pay the bill. TREAD CAREFULLY!
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