So i have a unconditional settlement on a property Friday this week, the bank how now just this morning decided to revalue 5 of my properties 3 days before settlement making it conditional approval again.
These were system vals done by the bank previously but now asking for full vals at the last minuet.
Ive already signed the loan docs and got unconditional approval last week which has been sent to the other sides solicitors (making the contract unconditional)
Has anyone else been through this or heard of this happening? If so what do you think the bank is up to?
I've never had it happen to a client before.
It's an unfortunate result of cross collaterisation – sprinkled with a lot of incompetence from the banks part.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
its true, this is the last time im crossing any property – its been a nightmare for me and the bank manager.
Best to let it all settle and then fix the problem asap.
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
This was the reason to do cash out instead of cross collateralizing, both seem to have pitfalls. Although crossing properties is the worst option.
Which lender was this?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
westnblue wrote:@terryThis was the reason to do cash out instead of cross collateralizing, both seem to have pitfalls. Although crossing properties is the worst option.
It was probably already crossed.
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
Jamie M wrote:Which lender was this?Cheers
Jamie
Commonwealth bank. Its really a lottery who you get in credit in Sydney. Problems only happened when properties where crossed.
I do have a plan in place to resolve all this. Just want this one to settle first.
Not quite the same situation as yourself. But I did have one occurrence with CBA on a similar topic. I was selling a property (that had been purchased with 20 percent deposit) about 10 months ago. I had other properties with cba. All of them are not crossed together (always always took out a separate loan with a 20 percent deposit.) I'm 3 weeks from settling and they tell me they need to come around and value my other properties. I asked them why they needed to do that. She told me they were cross collateralised. I told her they most certainly are not. She better get her manager and tell me why CBA have CC'd my assets whilst my loan documents specifically say they are stand alone. They (cba) back tracked very quickly in that conversation (also got another year free on the wealth package for that one). You never know what they are doing behind the scenes and sure they prob could get the other properties if I defaulted. But not before they took the property I defaulted on first.
Btw I have noticed though. A lot of the times when I purchase property with CBA if I tell them what my other properties are worth they would put that into the system as a desktop. (The system has a medium house price for each suburb and depending on what you listed the value of your property at will say if it requires a desktop valuation, drive by or full valuation. And specifically your house might be worth 350k. But by putting in 360k,370k (opps changed to a full valuation) drop back down to 365k and it's back to desktop.
Then when you sell with CBA they go… Full vals on everything they are not sure about.
They are prepared to load the additional risk if you are giving them business but not if thy is taken it away.
Crossing equals danger. As the boys have already suggested, get over the hurdle of settlement and then untangle the crossed mess ASAP. This will probably mean having to refinance a bunch of loans. Either of the boys that have commented could sort this out for you.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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