Am worried about setting up a VF deal, as the vendor, aren’t rates in my name? If the buyer doesnt pay them can this then come back on me?
Sally you as the owner would cover the Council Rates and then in turn debit the wrappees loan account with the same amount.
Richard Taylor | Australia's leading private lender
Thanks Richard
Hi Sally
Richard is spot on, i.e. it is much safer for you, as the owner, to make sure all these bills are paid. An alternative we use is to add a fixed amount to the new owner's weekly payment, eg. $45 to $50.
We then pay all the bills as they come in and do a "wash up" towards the end of the year to see if we got the dollar figure correct. If our estimate of say $50 per week was too high, we give the new owners some money back (or take it off their loan). If it was too high, they owe us some money and we adjust the $50 to a higher figure.
Our new owners seem to love this option as they don't get surprised by large utility bills. They just pay a fixed amount each week.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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