The family home that I grew up in was left to my sister and myself when my dad passed away in 2011, it is located in a small rural community in Victoria on the outskirts of a small township. The house is on 2.5 acres of land and is next door to a small caravan park, which has a kiosk with a couple of fuel bowsers at the front. I’d estimate there would be at least 50 metres between our property and a fuel pump.
The property has had tenants in it for the past few years, so when they gave notice of intention to vacate, my sister & I decided to put the place on the market and sell. Some buyers made an offer which we accepted, pest & building was good as was the valuation.
On the final hour before “cooling off” finished we received a call from the listing agent saying that the whole deal had fallen through. The reason given was that the mortgage insurer (must have been a highish LVR) didn’t like there being a service station next door and wouldn’t insure the lender.
In an effort to keep the deal alive my sister & I offered to fund a 2nd mortgage in an effort to keep the mortgage insurer out of the deal.
Now we are hearing that the bank they were using won’t lend them anything towards our house at all.Does this sound feasible ? or is somebody either over zealous at the bank/mortgage insurer. Do you think other lenders would view this differently ? Or are we stuck with a property that is unsaleable ?
Hard to know without a full valuation but potentially Yes it may not be deemed a suitable security for mortgage purposes.
You would have to question why the agent put the contract forward if he was aware of the buyers circumstances but apart from that it is likely you would find to fund a lender to fund something on the deal.
What you may struggle with is a lender that allows you to fund a 2nd mortgage.
Cheers
Yours in Finance
0-40 properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
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