Hi – Can I ask what measures you wrappers take to check the credit history of your wrapee? What avenues are available to a non real estate agent?
Thanks,
wrapfinder
Part of the wrap buyer’s application is they have to request their credit history from Baycorp Advantage.
No credit check, no house.Keep smiling
Felicity
I agree with Felicity.
Our application form is quiet thorough. We insist on a credit check but that is not to say that we won’t lend to someone who has had a past problem.
When you look at as many wrap deals as i do you need to have as much information to hand up front to make a judgement call on the deal. Lets face its my own money that is at risk.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Hi Richard
This is slightly [offtopic] but noting that you have a ‘massive’ (to me anyway[biggrin]) number of Wraps, are you able to give a percentage of deals that the Wrappee has walked away from? If you don’t want to, that’s cool, cos just being nosey[blush2]
Cheers
MelHi Mel
No always happy to share information.
We receive around a dozen deals a week and probably discard 50% of those as they fail our underwriting policy for whatever reason.
Out of the 6 deals left we probably will proceed on 1/2 of these a week and offer the balance to our existing investor clients.
Hope this helps.
[suave2]
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Hi Richard,
I think Mel was referring to wrappees defaulting on their loans…(?) [confused2]
Lozza
Me again —
How can you check someone’s past rental history if the estate agent involved is totally rude and unhelpful? They keep referring to the privacy act. I have asked the wrappees to get something from the estate agent, which they haven’t done as yet.
Thanks!
Lozza
Type a letter from the client to the agent authorising you acess to thier rental history. Get the client to sign it and give it to the agent. If they will not sign it then they must have something to hide or do not really want a home. If they whine some more then ask them if you can borrow $200K with no supporting data and on trust alone. Bet they wouldn’t give you $20 on that premis.
Dave
Hi Richard, thanks for that info.[biggrin] As I said, just being nosey. I guess it really goes to show that their is still a huge demand in the marketplace for Wrapping.[specool]
As Lozza said though, my interest is also in how many of your clients who have purchased a house have actually not completed on the deal, and have had to walk away (for whatever reason – other than them onselling at a profit).
Cheers
MelMel
Yeh good point you raise.
To date in 8 years of being involved in Vendor finance we have only had 1 deal go sour on us.
When I say go sour I mean the client literally moved out and handed us the keys back. In simple terms a lot of her income was from being a registerd carer. Unfortunately with the turmoil in the “caring” industry in Qld she lost all the children she cared for and hence the Government assistance that went with it.
Subsequently the property has been resold at a higher price than originally sold for and we have enjoyed the capital growth.
I guess in the months that the we took to obtain legal possession we lost a few bucks but my attitude is i think 1 in 148 is a statistic that the majority of the major lenders would be “Wrapped” (sorry about the pun) with.[cowboy2]
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Hi Richard
Thanks heaps for that – I think that statistic is a real credit to your organisation and how you guys process applications etc.
What a shame I saw that you’re not looking for any more investors[glum2]
Cheers
MelMel? You’ve been thinking about investing in wraps??
kay henry
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