From what I can gather from your posts, what you're asking is 'is there any way to unload a house which you no longer want but can't sell or rent?', is this correct?
If living in the house, renting it or leaving it empty is not an option, and if significantly lowering the sale price to the point of selling at a loss still does not result in a sale then unfortunately there are very few options.
I've heard of a 'strategic default' which is basically choosing to default on a mortgage, although I'm not sure if that's an option in Australia. There's also filing for bankruptcy so that you are no longer liable for your debts although that is a big decision to make with far reaching consequences.
If she has absolutely no hope of selling it at the lowest possible price I'd suggest your friend talk to a financial advisor at her bank to see if there is anyway she can pause her mortgage repayments or somehow have the bank repossess the asset (house) so she is no longer losing money on it.
I hope it works out for your friend, sounds like an awful situation to be in.
Star Light (15-05-2015)
Mama Mirabelle (15-05-2015)
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