In big trouble – need some help

Sorry to hear about your dilemma Delight.

Drop me a line, there may be a way out (no guarantees).

Pisces133

[email protected]

What I don’t understand is why that

There are a couple of things you can do, but first it sounds like you paid a brokerage for the broker or the lender is Liberty. If it is not Liberty, you should (well most LO Docs do)revert back to the standard variable after 2 years good payment history.

Problem solved;

Firstly, if your new loan is at 80%lvr, you could refinance to 90%Lvr. If your property is valued at $380000 you would recieve $42000 extra less costs.
Secondly, take out a second mortgage on your remaining equity.
Thirdly, try tactics like approaching the owner of the property you want, to leave some of his/her equity in the property as a second mortgage.
Forthly, access your superannuation.

You got heaps of options.

Need any assistance email:

[email protected]

Delight,

I totally agree with Stuart.

Picja1 is not doing you any favours! I think you have probably suffered enough lately.

Accessing super is for your retirement. I don’t know much, but most of the suggestions offered sounded quite risky, and inexperienced. Sorry.

Del

Hi there,

I’d go the more conservative way as Stu suggests. Although in fairness to Picja, I think his approach is creative, but I think you really need to know what you are doing before doing the ‘super’ thing.
On what basis did you pay the mortage broker? Is this part of accessing the low doc loan as Picja mentioned or is this an independant mortage broker?
Generally the mortage broker will be very helpful, until you suggest

quote:

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In case, my mortgage broker cannot do anything about this, or if he can suggest something and i am not happy can i get part of the 3,300.00 i paid as his commission

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I think money talks very loudly with MB’s.
Let us know what you decide to do and how it works out. Don’t give up though, solutions abound!

Cheers
Sooshie []

“small steps make the journey” (SAS)

Hey Hey Hey! Bite my head off why don’t you!

I was only suggesting ways for the person to access funds to start investing, as originally intended.

Delight, is in a situation where these were/are the answers to his/her problem. WANTING FUNDS to INVEST, now. Didn’t see you guys offer any – only sympathy. These methods were suggestions on how to access these funds, now, since being presented in his/her new situation.
I believe, the whole situation is mainly the brokers, fault. Yeh, sure, it wasn’t disclosed, but the lender would of told the broker on formal approval, exactly what’s to be paid out. If not then, the broker should always follow the deal from start to finish, meaning contacting the solicitors for settlement and checking the clients are going to recieve, the funds, that they original applied for. I’d ask your lender,when they became aware of it. Because, the solicitors would of known at settlement, you may have been able to stop the loan, then.

Superaanuation- well,well,well. You can access your superannuation now. How it works (but hold on, I may be too inexpeirenced for this!)is, you do a self managed fund. This means you are in charge of your super and can invest it where ever you stipulate. You may decide to invest it in investment properties, 2nd mortgages,shares etc… What ever you do invest it in, the return must be present to your super fund. For example, invest it as second mortgage loan at 5%p/a. Your super grows at 5%p/a. With this you can go one step futher; loan someone a second mortgage at 5%p/a (you may charge what you desire)and that someone lends his/her super to you at 5% p/a, effectivly assisting your problem at hand. You can even pay IO payments. You can even take security over their cars, as well. But, yes, you can not access the money until retirement(meaning cash in your hand), but it will grow your super faster than any fund is offerring, especially over the last few years, (a loss). And can give you some good practice before you do it with your immediate funds.To set it up costs approx $250 then $1095 per year for audits. Don’t believe me, ring the ATO.

Also with your super, you can pay for any investment properties and courses, computers and internet charges. You can even buy your business a property and many more.

Over 9% for 90%LVR Lo Doc. Yes, some lenders,but I DON”T know where you get your lenders from, but mine start at 7.7% and would most probably end up on 8.2%, in this case.
You would refinance in 3-12 months to the cheaper rates.
Once again, just an option for the person to access funds, You wouldn’t stay with the same loan for 30 years. Most loans only have a life of 5 years. 18 months if, non conforming.

2nd Mortgages, depending on term of the loan, start at 6% up to 15%. Once, again, same old story, just informing people of options to accessing funds.

Geese,shot me down for offering suggestions.

WINDEL: Where is the risk? Oh wise one!

Just found this on the ATO site, regarding Superfunds lending:

“Loans/financial assistance to members or a member’s relative
Trustees are prohibited from lending money or providing financial assistance from the fund to a member or a member’s relative. The use of a fund asset by a member or a member’s relative for no cost or as a guarantee to secure a personal loan for example would be in contravention of this investment restriction.”

http://ato.gov.au/super/content.asp?doc=/content/17585.htm&page=8

Terryw
[email protected]

Hi Picja1

As I said, I didn’t mean to have a go at you personally.

I think that solutions need to make sense. Sure, anyone can borrow money it just comes down to interest rate. But sometimes it’s not reasonable and sensible to borrow additional funds.

If the numbers work assuming you are paying 8.5% (plus all the costs) then sure go for it. However, for most of us it’s hard enough to get the numbers to work paying 6%. I think that there are only limited situations where borrowing at high rates makes sense.

Sure you might be able to use super money from your DIY fund. However, if the ATO looks through the transaction (applies their substance over form test) and deems your fund is non-complying then your fund will be taxed at the highest marginal rate (and not 15%). That’s not even talking about the risks with lending monies to friends (even with a second mortgage).

I used to work at KPMG Superannuation Group. I know how complex the super legislation is and how often it changes. That’s why I don’t offer advice in their area. I leave it to the experts that work in the industry every day. There is no substitute for experience.

Picja1, well done for thinking creatively. I am all for that. However, maybe you need to consider the risks (or at least point them out) before suggesting solutions. Especially, when you don’t know how experienced the person to whom you are giving advice is.

Don’t get defensive. I am NOT having a got at you. I’m just making a suggestion.

Cheers

Stu

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