Re: Australia housing bubble
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Quote:
Originally Posted by Trendseeker
Plenty of loan contracts? Perhaps the lenders should be referred to the Australian legislation that prohibits lenders from repossessing property unless the borrower is in default and the lender has issued a notice giving 30 days for the borrower to pay. There are a few conditions where they don’t have to give notice, such as the borrower gave false representations when applying for the loan.
http://www.lawright.org.au/_dbase_upl/Repossession.pdf
You may be confusing mortgages with secured margin loans on investments. The lender can ask for the borrower to stump up more money if the LVR on their securities falls below a certain threshold. |
There is a general clause about 'adverse material change'.
The death of the borrower is an event of default.
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Mel Brooks sums it up best;
"Comedy is when you fall into an open sewer and die, tragedy is when I get a paper cut"
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