Ok.. I just typed a huge post… clicked the mouse and it all disappeared without posting [8] so Ill be brief this time…
I have one investment property in Perth and am after my second one now. I have made an application to a particular lender, and have been refused due to one late payment in Sept 03.
I am 23, and sold my business in Perth before moving to Sydney to live and start a new job (same industry) and a new life. In doing this I expected that my increased income, lower overheads and secure employment would make it easier than making applications as a self employed person. Everything else is ok except for this one late payment…
Anything I can do to get this approved??
Luke [8D]
try another lender?
or use a mortgage broker…. they normally have friendly acquaintances with certain members of the lending industry….[
]or if you like, i’ll buy your perth property from you…. $10000, seems fair….. bit of money in the bank….hehehe
devilcv8, don’t spo’se you drive a monaro????
Luke, I suggest you definitely contact one of the Mortgage brokers on this site. You can give them more details in privacy, and they can tell you if you in fact do have a problem, and what your options are. I think there are always options.
Cheers
Melyes, how did u guess? haha
(Long story… at 23 I should be driving a Commodore that cost $5k or so, but Ive learnt from that little mistake and have decided to keep it instead of selling and losing 20k!)
ANYWAY…
As for selling the Perth property, if $10000 is your deposit, thats fine… Ill accept the other 290k on a “special” 30 day settlement termI strongly agree with the “buy and KEEP” principle, and unless I have made a very very poor investment decision, do not intend on selling a property after purchasing it.
As for the lender, I have a mortgage broker and I have used this person twice before who also invests in property, and also knows my accountant and he, too, invests in property. She has advised me that I may have to wait another 6 months till I have perfect repayments again… Im too impatient for that!
[^]
Luke, it can’t hurt to ask for a second opinion!
Cheers
Melvery true.. thanks Mel
I have pm’d a mortgage broker on here for advice… see how we go! [:o)] I will keep my fingers and everything else crossed for now…
Good luck with it. Mortgage Hunter and TerryW appear to be the guys that log on most often. So if it wasn’t one of those two, and you don’t get a response, try them.
Cheers
MelDo lenders refuse you if you’ve missed one payment on a mortgage?????
Could some of the brokers on here or anyone who knows about this please let me know? sheesh- it seems like a pretty harsh rule!
kay henry
Hi Kay,
If you read the small fine print it also says, with some lenders, missing one payment you pay a penalty of $20 plus next weeks repayment and the extra interest to be charged and incurred.
Cheers,
s.i.ssis, I have no problem with penalties for late payment. I do think it is incredible that one might be knocked back for finance due to one late payment… Penalties are quick and painless really. Unable to get finance is a disaster.
kay henry
Hi Guys,
Another important thing, its important to be able to check accounts that there are always funds in there. You yourself might have no problems with repayments, but some PM seem to put payments in either late or tenants decide to pay rent a week later and thus in meaning. When a bank repayment is meant to be payed, it could be your PM or tenants fault for not paying or direct payment to your account when suppose.
Though this has never happened to me, i do keep regular track of accounts and balances.
Cheers,
s.i.sThe payment was late as I had sold my business, paid out all associated debts, and financed my move over to Sydney which was a very tight time for me financially… looking back, I would have done things differently!
The fees associated with letting out the property, advertising etc were much more than expected and I had obviously not calculated this properly…
Along with this, I had to wait 4 weeks after getting to Sydney to get my first paycheque which was very much needed by then!
Waiting to hear back from the broker this week to see if there are any other options… I knew the banks were strict but hey, im sure there is another lender out there that wants my business!!!
At least on here people understand how frustrating it is dealing with lenders sometimes! Cant wait for the day when they ring ME to see if I want to borrow any more capital[:p]
Hi
Missed payments are a problem, but usually can be explained, but this will depend on who you are dealing with.
Did you catch up payments? was it long overdue? Was it a lapse in your thinking, or shortage of money? I dont need an answer, but I do know that when I explained my late payment it was accepted.I have rental properties, using equity, as a single person on a ave wage getting my first loan for my own home was the hardest. Single female, low wage, no employment history after being self employed for years. No one wanted to know me. $80k was the offer and that would have bought me a dog kennel.
I had defaults, but not through lack of payment, disputed account. Now I make the effort to pay all dues when they fall due. Even if it means shuffling accounts.
I did start mortgage broking, and changed track, but yes one missed payment can be enough to knock you back on finance. As I said depends on WHO. And often if you build an alliance of sorts, a broker or bank manager is more likely to be flexible and help rather than hinder.
I love my bank manager, and how many people can say they got a bottle of red brought to their door![:p]
I’m looking to more fun in my future! And no not with my bank manager.
[
]Lynn
If it was just a few days late and you paid it in full, there should not be too many problems. You need a GOOD excuse. Saying things were tight financially is not such a good story and the lender may worry that you cannot handle what you have now.
Another veriosn of the story could be that you moved interstate and mail got mixed up etc.
I assume you are trying to increase an existing loan to access equity? If you are just applying for a second loan, there would be no reason that the lender would find out you were actually late.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You need a GOOD excuse. Saying things were tight financially is not such a good story and the lender may worry that you cannot handle what you have now.Another veriosn of the story could be that you moved interstate and mail got mixed up etc.
Its not so much that I need an excuse, as I feel being honest with them and telling them that selling my business and moving interstate to start a full time job was a better option. As this sort of thing is not a regular reason to miss a payment, my perfect payment history for over 2 years should be enough for them… [:p]
Lynn, I know how you feel.. maybe I should meet your bank manager and buy him a bottle of red haha
I think I have enough info now, thanks for your input guys! Ill let u know the progress…
Luke [^]
Simon (MortgageFinder) has been given all of my details (figures etc) and beased on the info given he said that he could get a loan approved. So If I havent heard good news from my broker by the end of the week I will get onto Simon for assistance, thanks Simon.[^]
[
]Good stuff Luke, and good luck [
]Cheers
MelOriginally posted by melbear:Good stuff Luke, and good luck [
]Cheers
MelWell done, and happy investing
Cheers Matt
“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Hi devilCV8,
From memory, the banks only ask for the last 6 months’ statements. If you missed your payment in Sep 03, it’s only 2 more months to March, when your 6 month statement won’t show the missed payment.
Unless the bank specifically asks you if you’ve missed a payment, I don’t see why you need to tell them if you’ve given them all the information that they’ve asked for, and the missed payment is not going to prejudice your ability to make payments under the new loan.
You might want to take the admirable approach of being up front and open with the bank, but that won’t be reciprocated with any concessions from them.
Anyway, that’s my 2 cents’ worth.
Cheers
Elysium-M
]
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