Urgent help needed!
We have just purchased the 2 IP for 384K (settlement due in 3 weeks only!). Today we went to the bank ready to sign final papers for the loan. We discovered that the bank offers us the 100%+ loan, but takes 2 securities (PPOR and IP). As we understand this would be crossed security arrangement (is it correct?), what we want to avoid.
Our current situation is:
PPOR – loan 125K, market value – 800K, bank valuation – 599K
1IP – no loan, market value 390K
What’s the best solution to make 2 loans separate? Is LMI worth considering, use the savings as deposit or try to refinance the loan on PPOR? Are there any other options? Do we have enough time to find another lender?
Please HELP!!!
Nattacia
Hi Nattacia
I think time is against you on this one but certainly I would not be crossing the securities.
Why not just settle and then immediately look to restructure elsewhere. The other thing is the market valuation and Bank value are miles apart. You are not currently with the NAB or CBA are you ? If so that is why.
Would need a little more information to provide accurate advice but most things are doable.
Richard Taylor | Australia's leading private lender
Thanks Richard…
Nattacia
I have found NAB to be the best lender as far as high valuations go – perhaps it is more my mortgage contact than a mainstream policy!
If you are with CBA then don't plan on refinancing fast. Those guys drive me nuts sometimes. When you are ready to do something give Richard a call – he will look after you very well.
xcoll isn't the worst thing in the world. Fix it when you can but don't lose too much sleep over it at this early stage of your investing career. Maybe wait until you buy IP3 and get him to fix it all then – but give him plenty of warning – maybe about when you start thinking seriously about looking. He wont thank me if you call him 4 weeks out to unravel it all!!!
Cheers
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