All Topics / Finance / Financial dilemma

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of pluto123pluto123
    Member
    @pluto123
    Join Date: 2008
    Post Count: 5
    January 20, 2011 - 6:46 am

    Hello property investors, my first post. Would appreciate some sage advice if anyone can.
    I have 2 IP's.  the loans for each are with the same bank.
    I am selling one and the bank wont release it unless they receive all the funds from the sale. Mortgage is 270k selling for 380k, the bank want the surplus 110k to go to the other loan which currently is 145k. The reason they say is because i have been late with the loan several times and received a default notice last year at one stage as well.  I need the 110k to pay some debts, and fund another property perhaps.   I understaand the bank is worried about my ability to continue to pay, but I am not worried, I was in a tight spot last year thats all.
    I will still sell the property, I have committed to the buyer.I will then have one IP with a mortgage of about 35-40k and a value of 300k.
    If anyone can help that would be great, thanks.
    Sean. Sydney.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    January 20, 2011 - 8:44 am

    Hi Sean

    Welcome to the forum. I'm sorry to hear about your situation. This is one of the examples why cross-colleterisation should be avoided.

    If the default has hit your credit report then refinancing to another lender could be very difficult. Normally, you might be able to refinance the remaining loan (after the sale) to another lender and access some of the equity at the same time. However, it's going to be difficult for someone in your position due to the default and your current loan statements showing regularly late repayments.

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of pluto123pluto123
    Member
    @pluto123
    Join Date: 2008
    Post Count: 5
    January 20, 2011 - 9:23 am

    Hi Jamie and thanks for posting.
    I agree i cant approach a bank. Do you think I can approach a non bank lender   or a broker like yourself  who deals with them to refinance the other property to say 40% LVR lo doc., pay a higher rate, something.            .pluto

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    January 20, 2011 - 10:47 am

    Hi Pluto

    Sure, I can look into it for you if you like. Just shoot me an email.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.