Posts Tagged ‘DEBT’

MIPIM 2010 – The USA: a trillion dollars of maturing debt – impact, resolution and opportunity

The American commercial real estate market is experiencing a painful devaluation. This is attributable in part to the $1 trillion of debt maturities due over the next few years, record real estate debt levels, and the erosion of tenant basics. The panel examines the state of the US property market, including the difficult choices facing borrowers and lenders as debt matures and the opportunities that distress presents for investors who plan carefully. Moderator Stephen Renna, President, National Association of Real Estate Investment Managers – NAREIM (USA) Speakers Douglas Callantine, President & CEO, Grosvenor Investment Management US Inc. (USA) Bradley Cohen, President, Cohen Asset Management (USA) James Martha, Managing Director Property, North America, Henderson Global Investors (North America), Inc. (USA) James L. Neal, Chairman, Metzler North America (USA)

What is my best option on clearing my debt?

I foolishly hooked up with a man I met in Cannes around three years ago and he moved over to England to live with me. At the time he said he had money but now I found out it was a lie and to tide us over until he received payment from his “business” I took out a loan which now stands at 9.5k. I’ve paid off a good 10k of debt already of his be it unpaid bills, amentities etc. Needless to say we’re no longer together and he has no interest in paying me back and since the loan is in my name, the bank is just fine with the situation.

I’m looking to go traveling very soon because I’ve never really done it and this loan is really niggling at me, I would certainly like to do something about it before I go and have come up with the following options. As it stands I have a pretty good credit history and have worked very hard to keep it this way despite my ex’s attempt to ruin me and would like to keep it intact if possible.

1. Go to a debt management company and negotiate a payment plan or settlement fee based on what I can afford. My father has offered to pay 5k if I can get a settlement figure of them for this amount.
2. Extend the loan – not my best idea since the interest will be higher and the payment term will be longer.
3. My father has offered to pay the deposit on a loan for a mortgage. I could add my existing debt to the end of the mortgage and eventually rent out the property while I’m abroad. This would mean that I would have something to come back to when I return but also it comes with a long list of complicated payments which I will need to manage well, especially if I am abroad and my work is inconsistent.

I don’t plan on leaving for my travels until Q1-Q2 next year.

Please can you advise?
Answers to Reena’s points below:

1.) Negotiate a settlement amount for the loan…
After speaking with my bank, this is not a possibility unless the account is in arrears and since I’ve kept on top of my payments, the only way around this would be to move to a payment plan or extend the terms of the loan, alternatively if I speak with a debt management company, they may be able to negotiate a settlement fee but again, if my account is not in arrears then this is unlikely. This would stay on my credit report for 6 years. I have 5 years left to pay off my loan.

2.) Extending the loan? ….
This has been proposed by my bank as an option. I do not believe this will be a problem to arrange but it’s definitely not a favourable option.

3.)About mortgages…
My apologies, I meant downpayment. This is the first time I’ve ever investigated a mortgage so I’m very early in my understanding of what is and what is not possible. So in this area I need as much information as I can get. cont
cont.

3.) From speaking with my friend who’s been in the property market for a while and also acted as landlord the required downpayment is in the region of 10-20%. Banks here don’t tend to mind how you raise the deposit, more that you can keep up the mortgage payment amounts. I have been and still am in consistent employment with the same company for the last 3 years.

The downpayment my father would be providing would be a personal loan to me, and I would be expected to pay it back.

4.) If I chose to go forward with a mortgage then my travels would be delayed until I’d had the time to at least save a year’s mortgage payment + estate agent fees if arranged, to fall back on. My travel plans are not something I would advertise to a lender.

THE DEBT a film by Bruno de Almeida (PART 2)

Bruno de Almeida’s first short won the Canal + award for best short film at the Cannes Film Festival Critic’s week in 1993. It stars Paul Lazar, Kristen Johnston and Scott Renderer. The film went to 85 film festivals around the world and won awards in France, Italy, Spain, Portugal, Greece, Finland, Monaco and the USA. It was broadcast on Television and Cable on IFC and Bravo (US) Canal + (France) BBC (UK), Telepiu (Italy), Arte (Germany) among others. It was also released theatrically before features.

THE DEBT a film by Bruno de Almeida (PART 1)

Bruno de Almeida’s first short won the Canal + award for best short film at the Cannes Film Festival Critic’s week in 1993. It stars Paul Lazar, Kristen Johnston and Scott Renderer. The film went to 85 film festivals around the world and won awards in France, Italy, Spain, Portugal, Greece, Finland, Monaco and the USA. It was broadcast on Television and Cable on IFC and Bravo (US) Canal + (France) BBC (UK), Telepiu (Italy), Arte (Germany) among others. It was also released theatrically before features.