21 day settlement possible?

Discussion in 'Property Finance' started by vbplease, 17th Jun, 2015.

  1. vbplease

    vbplease Still on my L plates

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    I'm trying to make a competitive offer i.e. unconditional with standard settlement (30days). Broker said the bank will more likely need 45days based on current conditions. I'm told we missed out on a deal because they offered 21day settlement :eek: seriously? Can any lender provide settlement in 21days?
     
  2. jerrybee

    jerrybee Member

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    I don't get it either. All the agents tell me I have no chance with 45 days, but even when I have all my stuff organized and perfectly lined up ready to go, there are always unexpected delays. Especially in a hot market, because the banks are getting slammed. Maybe just ask for 21 then keep extending as needed. Just play the game.
     
  3. Corey Batt

    Corey Batt Finance Broker

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    No fat in there for delays - 30 days is open to lender muck ups creating very tight situations.

    Don't forget not all people require a loan to purchase, they can have a large LOC available or cash.

    Alternatively if its the right State they might be happy just to go overtime and wear the penalty fees to secure the property.
     
  4. vbplease

    vbplease Still on my L plates

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    Yeah that was my approach in offering 30days.. Ask for an extension when needed. I knew 45days wasn't a hope.
     
  5. Shahin_Afarin

    Shahin_Afarin Finance Broker

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    Is it possible yeah but depends on the circumstances - say its 80% LVR and you use a COS lender like ANZ, CBA, Westpac, etc and your broker or banker has the ability to get credit to look at it within 24 hours of submission.

    Then you can get docs emailed to you. Hopefully its not a QLD purchase where you need to find a JP or sol to witness the title docs.

    So yeah you need a few things in going in your favour.
     
  6. vbplease

    vbplease Still on my L plates

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    If they're paying cash or LOC they could do a lot shorter than 21days couldn't they? 21days doesn't make sense to me..

    Penalty fees is the default interest rate? I guess not so bad for a $600k purchase? About $2k for another 20days..
     
  7. jerrybee

    jerrybee Member

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    Agree. I figure it would be either very short terms or 45 days. 21 is a weird middle spot.
     
  8. lazibones

    lazibones Member

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    Yes, its possible just settled in 23 days lawyer said it could have been quicker.
     
  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    I have participated in 21 day settlements. I wouldn't want to rely on it however, especially in the current lending environment.
     
  10. Rolf Latham

    Rolf Latham Member

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    depends

    if all the ducks line uo and you dont need a val, 14 days is feasible

    but its end of tax time as well, and the average lender will take 30 to 45 days as your broker suggests

    ta

    rolf
     
  11. Waldo

    Waldo Rock Analyst

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    People do that? Surely people have more self respect than that?