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What can happen now???

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Hi all and thank you for advice on previous posts….
To summarise: Separated in 2007. Divorce final in 2008. Married only 3 years. Had a mortgage to bank and a second to her mother, both in both names.
I had major financial issues and had to go bankrupt last year.
Now she has not paid the mortgage for the last 4 months, although she paid it up until then. Consequently the bank has sent out a default notice.
I am supposing that it will go into foreclosure.
We never have officially completed a property settlement….The house was our only asset. Is a formal property settlement any use now???
I suggest you get legal advice from a family law practitioner. This isn't something you need to sort out pronto.

HTholden said
We never have officially completed a property settlement….The house was our only asset. Is a formal property settlement any use now???
The short answer is no. You need to firstly satisfy the bank and a default notice is usually issued well after numerous letters and attempts to contact you. This moves the stakes up a notch as you will now be managed by a debt unit rather than your local branch manager. It may be possible to talk about a six month non repayment program. The issue you have is that personal guarantees are all encompassing and the sale of the house through bank auction may well result in a large short fall of revenue which will be collected at some stage by the bank off the guarantors to the loan. The mother should be very concerned, your ex partner should be concerned for her mother and you should be on to resolving the issues as soon as possible with communication to the bank sooner than later to sort something out.

Spending a  whole heap of money you dont have on solicitors at this stage might be better spent satisfying the bank to continue the mortgage facility. If you went bankrupt last year what did the bank have to say I wonder about the mortgage… You speak about foreclosure a term mostly used in the USA so I am not sure if you are in Australia or not. I haven't read your previous posts.


Executive Secretary - Shared Parenting Council of Australia
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Thank you for replies. Yes, I am in Australia. When I went bankrupt last year, the mortgage people were advised by my trustee, but tend to do nothing while the loan is been serviced. The strange thing, is that after I moved out in 2007, she paid the mortgage until I went bankrupt….not sure why she stopped then!
My question is: Say the mortgage people take legal action and repossess the property, is there still a need to do a property settlement at all?
My trustee states that even if there is a shortfall, it is a provable debt in my bankruptcy.
I assume, since she has stopped paying the mortgage, that she no longer wants the house, as we had an informal arrangement from 2007 that as she was living in it, she would pay the mortgage.
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