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Property settlement - Mortgage payments

defaulting mortgage

Property settlement, i dont know if this question is in the scope of this forum,  ex wife in house , ive been trying to keep house and have been paying full mortgage, but its becoming too difficult.

I havent got time money  or energy to take to court for property settlement.

If i just stop paying and default on mortgage, whats  the likely scenario of how that may effect me, as i have a small unit thru other lender, the bank say they will go thru there process of selling which takes about 90 days if i default, im worried about being black listed or something, and then i suppose the left over money would be split, its my last resort, any advice would be greatly appreciated.

Last edit: by Secretary SPCA

You will certainly have a credit impairment IF the house sells and there is a shortfall. If there is a default you will have an advice on your credit file that will remain until it is cleared and then some time after that until credit reporting agencies drop the non-payment. I caution against doing this because it is extraordinarily time-consuming to deal with the credit reporting agencies and definitely will impact your credit rating.

There is possibly going to be an impact at the 'other' bank also. I believe it takes longer than 90 days and you can apply to the bank for hardship and get a range of options including lengthy interest holidays etc. You need to get some advice as the post indicates to me you have little knowledge of what might be possible.

There is much to be gained by going into the bank and talking to a real person. Are you going to do this with your ex or on your own? Does she know the circumstances you are in? Are you both on mortgage documents? Does your ex work and have any income? Do you have children? How long have you been together?

Depending on circumstances, the 'leftover' money would be split IF you and your ex-agreed or consented. BUT if you do not you will need a mediation process and the court process if mediation fails.

Many folks are in your position but if you start talking to free financial counselling services or an FRC (Family Relationship Centre) to see what options you have. You can also look at https://www.moneysmart.gov.au/ and get some contacts.

Executive Secretary - Shared Parenting Council of Australia
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Thank you I talked to free financial advice today who are a great help just like the family law web guide , these problems all started with CSA and there 3 mths ( back pay ) which came from no where ! at the start , 10 grand , when I Was already paying everything , in my life I have never needed financial help till I encountered CSA !
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