# Haven't a hope of paying off my mortgages



## fred (25 Jan 2012)

Brendan,
I have 21 years left on an interest only .7% over ecb on 960k mortgage with BOS.payments up to date but havnt a hope of paying this off.I have 4 investment properties all on trackers worth 100k less than is owed on each,none of these mortgages are with BOS.My house is worth about 850k now and would like to do a deal with the bank whereby if house sold for 850k i could walk away with 250-300k,about a 35% write off,i would like your thoughts on this.


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## 44brendan (25 Jan 2012)

Certus are certainly doing deals. However, I don't see your proposal as being a runner for any institution. If you were to approach Certus and agree to sell the property on the basis of net proceeds as a full & final settlement of the 960K mortgage they may agree. The prospect of them accepting 550/600K on this debt is unlikely. However, if you have a 21 year interest only rate with them you are in a strong negotiating position. Who knows??


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## fred (25 Jan 2012)

Thanks Brendan,how do you think is best to approach them,myself or someone like Harry Slowey on my behalf.....


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## 44brendan (25 Jan 2012)

Its not important who makes the approach. However any offer needs to be reasonably realistic. At .7% over ECB this mortgage has a high level of annual loss to the Bank over their cost of funds. Do the maths over the term using an estimated loan price to the Bank of corca 2% (difficult to establish what BoS is paying for funds) and then use a net present value to establish this loss in current value. This will give you an idea of what kind of deal is worth their while accepting.


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## fred (25 Jan 2012)

at 2% cost for bank funds 960 over 21 years is a loss of 260k to the bank over the next 21 years and they have probably already lost 50-60k on it over the last 5-6 years.I have been told that Certus will accept 70% settlements on people like me on trackers of 1% or less.


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## fred (25 Jan 2012)

The person who told me this owes Bos 4million on property worth 2mill but his business is gone downhill and cant get refinance with any other bank.


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## 44brendan (25 Jan 2012)

Yes, I've seen some dramatic write-offs by Certus. They are even approaching good clients meeting their monthly payments in full & offering deals to exit the relationship. Best of luck. Send me on my commission


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## fred (26 Jan 2012)

Wish they would knock on my(there) door,your commission.....i would only too delighted to if i get this a resolution....thanks and any advice you can give me i would appreciate it.


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## Bronte (26 Jan 2012)

Is this correct you are about 500K in negative equity and you think the bank will let you sell and keep 300K?  Have I missed something.


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