Hi
I am needing help regarding the title to our house
We purchased our house jointly with my mother in law in 2008. We own it with no mortgage.
We recently planned some additions to the house itself and had decided to go for a loan to pay for it.
My mother in laws name is on the title and we have now been rejected for the loan as she is considered a bad risk. We would be approved instantly if she wasnt on the loan.
What we need to know is how easy it is to have her name removed from the title in order to go for the loan. She has no problems doing this we just need to know the implications of it all, Would it cost a lot of money, etc
If anyone can help it would be greatly appreciated!
Thanks
You would basically have to buy her share of the house – and pay stamp duty. She may also have to pay CGT if it is an investment property.
Maybe you should just try another lender?
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
And stamp duty (and CGT) would be based on market value too.
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
Alternatively look elsewhere for the loan.
She would have to have absolute horror of a credit report to get rejected where you have considerable equity in the property.
Do you have a copy of her Veda Advantage Report so you can see what any potential lender is seeing.
Richard Taylor | Australia's leading private lender
Thanks for your advice.
We have been to two banks and they both said the same thing. The second bank is the one my mother in law belongs to and has her money invested. I assumed they had all her relevant information in regards to this.
Thanks again
Can you apply for the loan in your names and not the mother-in-law's?
NO not when she is on the Title.
Do you have a copy of her Credit File if not suggest you obtain one ASAP.
Nothing is beyond repair especially when you have that much equity.
Richard Taylor | Australia's leading private lender
Thanks
We decided to go to yet another bank this morning(bendigo) and I just spoke to them on the phone. This woman told me that she cant see why we were rejected and why my mother in law would be a risk. She said that from her standpoint it looks good, but obviously we have heard it already this week and wont take anything but a written offer as gospel.
She did tell me though, that when she ran the required credit check today that the credit check that the other Bank did was on the system but it appeared to be only in my name and not my husbands or my mother in laws. She said that it was very strange because when multiple people apply for a joint loan all names are given a credit check!
Any ideas on this?
We were hoping in the near future to go into property investment but I dont think that it will be happening for a long time.
Here we are trying to get ahead and we seem to have been hitting road bloak after road block.
But 3rd times the charm right??
Thanks again for all your help
Cazz
Cazz
I hope the Bendigo didnt just do a credit search after your telephone conversation but indeed got you to make a full written application and all signed Privacy Act Authority.
I am sure the previous Banks did a search on all 3 parties however it just depends on how Veda process the enquiry.
As mentioned you should get your mother in law to order a copy of her Credit Report so that you will now once and for all.
Richard Taylor | Australia's leading private lender
Cazz
I hope the Bendigo didnt just do a credit search after your telephone conversation but indeed got you to make a full written application and all signed Privacy Act Authority.
I am sure the previous Banks did a search on all 3 parties however it just depends on how Veda process the enquiry.
As mentioned you should get your mother in law to order a copy of her Credit Report so that you will now once and for all.
Richard Taylor | Australia's leading private lender
No we applied with all the appropriate paperwork this morning, these guys seem to be doing everything thoroughly.
Thanks again for your advice.
As i say under a 60% LVR there should be no problem anyway.
Richard Taylor | Australia's leading private lender
You have been a great help Richard, I thank you
Thanks again
Cazz
Sometimes there are people with the same names – so maybe your MIL had a credit check done, but they checked the report of someone else, and that is why it was rejected and why the last bank does not appear on her file.
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
Thanks again
We got our loan approved today
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