NEED HELP TO CLARIFY 'ALL MONIES' CLAUSE
I have read that even if you have have a stand alone mortgage instead of cross collateralised loan, the bank can still foreclose your property as a result of the "all monies" clause. This normally impacts borrowers that have several mortgages with the same banker.
Eg Investment property and Owner Occupied property both are stand alone with the same bank. If defaults on Investment property, the bank can still foreclose your Owner Occupied property as a result of the "all monies" clause.
My questions are:
1. I am not sure whether this is sill applicable under the Uniform Consumer Credit Code (UCCC) regime. Please help to clarify this...because if this is true, the only way to avoid exposing your other property is to get loans from different banks.
2. Can anyone give an example of "all monies" clause? So that we can look out for it when reviewing the loan documents.
I have read that even if you have have a stand alone mortgage instead of cross collateralised loan, the bank can still foreclose your property as a result of the "all monies" clause. This normally impacts borrowers that have several mortgages with the same banker.
Eg Investment property and Owner Occupied property both are stand alone with the same bank. If defaults on Investment property, the bank can still foreclose your Owner Occupied property as a result of the "all monies" clause.
My questions are:
1. I am not sure whether this is sill applicable under the Uniform Consumer Credit Code (UCCC) regime. Please help to clarify this...because if this is true, the only way to avoid exposing your other property is to get loans from different banks.
2. Can anyone give an example of "all monies" clause? So that we can look out for it when reviewing the loan documents.