Yesterday (21/12)I re-subscribed to the BCA Premium Full Credit File service and received an updated listing of my credit history.
I had previously received the report back in October 2003 and again in September 2004. In the latest report there was a listing of an overdue account from Optus dating back to 13/7/2000, which was not on the original reports.
This was not an error and promptly paid the outstanding amount ($167.09) yesterday. Optus mentioned that they would then send a communication to Baycorp indicating the amount has been paid.
The issue lies in the fact that whilst the actual entry will be removed from my credit history on 13/7/2005, I am intending to organise finance for at least one property, which was going to be greater than 80% LVR before then.
My understanding is that from a mortgage insurers perspective, this overdue account will preclude me from doing this[angry2].
I have spoken again to Optus and asked them, with some pleading to see whether they would be amenable to removing the default from my record by providing a communication to Baycorp of that effect. They declined and were not really interested in helping me out.
I am not sure what the next steps might be in this situation. Maybe Banking Ombudsmann? Does anyone have any suggestions?
Thanks
JamesOne more point that I forgot to make, earlier this year I purchased an IP at 90%LVR. At that point, there was no overdue account on my credit history.
Would this potentially go in my favour from a mortgage insurer’s perspective? ie already obtained finance. Although I guess they don’t see the LVR on the credit history, for all they know, it could be 50% LVR I guess. Of course, if it is the same MI, that might help….maybe?My husband had the same sort of problem. We didn’t find out about the overdue account on an old place he rented until we went to purchase our first home. We missed out on buying that home because of it. Later, we managed to find a very good mortgage broker and he said just to write a letter for the bank and mortgage insurer’s stating why the bill was overdue, that you had paid it on such and such a date and that it was now resolved. We got that loan no problems.
Thanks,
LuckyoneYou will face difficulty although some of the lenders ignore small defaults from phone company’s as almost everyone has them.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
James – most main stream lenders treat telco listings pretty casually – prepare a letter explaining situation and have this available when you go for finance. its a small figure, and it shouldn’t get in your way.
very recently thousands of listings made by defunct telco One Tel were erased as the court ruled the telco had ineffective billing and arrears management in place.
i am quite perplexed by the timing issue however.
cheers
brahms
Mortgage Broker
[email protected]I had a similar situation earlier this year, same telco even. I included an explanatory letter with my finance application (also to 80% LVR) and had no problems except a few sleepless nights in wonder.
~jo~
Shoudn’t be too much of a problem. But they can sometimes be pick on low doc loans.
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | 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
Talking about credit history, I have a client who is experiencing all sorts of trouble because he has a single default for around $8,000 which has been paid in full for nearly a year. He has never had anything else on his name.
The reason this happened is because he was bashed outside his home and was in hospital for months and had facial reconstruction surgery and did not receive his mail. He has police reports and medical records to support this.
I am amazed that the lenders are not letting this one through!
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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