Perhaps its time to ask my dad for a family pledge to avoid LMI? It will only be needed while we finish off selling our current house.

Ah, thats what i thought, thanks for clearing that up. So that means a LMI of about $5k

All because the ppl who have a contract on PPOR have failed for finance 5K in the toilet.

Valued by the bank.

I think my terminology is what wrong. There is an 20% buffer, its the fact that the bank will only lend 80% of the value.

Can someone do the math for me please correctly.

PPOR is valued at 425K
We owe 293K

We wish to buy a block of land for $309 + stamp duty. The block of land has been valued by the bank at 309K.

Please…[Read more]

Its in SA. And no they have not terminated the contract they didnt even notify anybody until i asked. They are trying to sell one of their houses and obtain bridging finance. Isnt bridging finance even harder to get than a normal loan?

Special conditions
(clause 14)

SC1 Finance
SC1.1 This contract is conditional upon the Purchaser obtaining, on or before the date specified below, approval in writing for a loan in the amount specified below (or such lesser amount as the Purchaser may accept) at the interest rate specified below and otherwise on such terms and conditions that the…[Read more]

You should seek legal advise asap. Usually finance clauses have an expiry date well before settlement. If you haven’t notified them that finance was not approved then you may be locked in to the purchase. Depending on which state you are in you may have just 14 days to settle if they issue a notice to complete. If you don’t settle in the time they…[Read more]

why would i need legal advice on a standard contract? Subject to finance is pretty standard. But the events that have followed, such as not notifying us that there is a problem with finance before the due date, and signing the memo of transfer before finance is arranged is not standard, and i would have thought a breach in contract to the point…[Read more]

Ok, i just opened my mail. I have from my conveyancer a “memorandum of transfer” which has been signed and witnessed by the purchasers. Its just waiting for our signatures. Its a form T1 if that means anything. Surely this is a breach of contract?

I cant understand how i can loose so much, but they dont loose anything. I have no protection but…[Read more]

what about the fact that they did not notify us that their finance is not approved by the cut off date? 22nd of dec? Is this a breach of contract meaning we keep their deposit and recover costs?

The also put “pre approved finance” on the offer form which was obviously false.

ive probably lost all the other interested parties by now because its been a month since signing. When does their deposit become mine? I cant understand how these people can sign, pay a deposit, then when they can get finance they can just walk away no penalty. Mean while, i have lost other potential cashed up buyers, marketing, rent possibly my…[Read more]

damn, mods move to help needed forum