Losing the house as debt builds
By Marea Donnelly March 04, 2008 08:50am
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THE real estate deal Danick Hitie set up as his children's inheritance has cost him his marriage and could, ultimately, bankrupt him.
Rising interest rates and falling property prices in Sydney's mortgage belt have left Mr Hitie about $100,000 out of pocket - so far.
This week he is listing his Glen Alpine house for sale for $22,000 less than he paid for it in 2003.
He is trying to meet repayments of $5000 a month on a $480,000 loan which has blown out to 9.2 per cent interest because he has fallen into arrears.
"It's a disaster. If I can't sell this house by next month, the bank will probably take it,'' Mr Hitie said.
For a year Mr Hitie has dodged bank letters threatening to have his estranged wife and two kids, aged 10 and nine, evicted from the house.
A year ago Mr Hitie and his wife owed $800,000 on two houses - their Hinchinbrook house, which they had used as equity on a home at Glen Alpine.
In July he sold the Hinchinbrook house for $315,000 - a $63,000 loss.
He claimed $43,000 from his superannuation last month to meet arrears against both loans, but Mr Hitie is unable to keep up with the repayments.
If he can sell the Glen Alpine house for $470,000 it would leave him owing about $70,000, minus $43,000 in super.
Still gloomy too...Trying to find some good news here.
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