Repossession while resident in Oz?

[whitlander]

My friend who is a resident in Oz has been letting a property out in the UK which he mortgages with a UK bank. To cut a long story short, he's having a problem with destructive tenants and a careless letting company. If he walks away from the house and the bank sell his property short of what he owes on the mortgage, can the bank then legally chase him in Australia for the balance?

[leclerc]

Re: Repossession while resident in Oz?

Interesting question and I would think the answer would be no, but I'm not 100% on that one....

[FlamingParrot]

Re: Repossession while resident in Oz?

My friend who is a resident in Oz has been letting a property out in the UK which he mortgages with a UK bank. To cut a long story short, he's having a problem with destructive tenants and a careless letting company. If he walks away from the house and the bank sell his property short of what he owes on the mortgage, can the bank then legally chase him in Australia for the balance?

I would say there must be a better solution than just walking away from the house and handing it back to the bank! :scared:

You don't mention him being in arrears with his mortgage or having a suspended possession order and not being able to clear the arrears. He could find a better letting company. As for destructive tenants, he may be able to get them evicted. Maybe the 'destruction' they are causing is not quite as dramatic as losing the house and any equity in it by letting the bank auction it off. A lot of tenant damage is cosmetic rather than structural.