Anz backdoor!

[teddy1]

Evening All,

Just after some guidance/thoughts on the below issue my friend is going through. I'll try and explain the best I can with most of the facts.

- Purchased IP OTP 5yts ago
- construction completed 18 months ago with tenants placed
- during this time they purchased another IP then turned into PPOR purchased and been living in for 3yrs+
- sold PPOR this year
- docs signed and upon settlement of funds ANZ took 60% and put them into IP1 with the balance put into there savings
-met with broker and they can't borrow anything or use equity as partner is on maternity leave, now needs to go back to work so they can buy a new PPOR or move into IP1. They are renting now

This screams of cross collaterisation but what did ANZ broker set up in original contract that paid the finds into the IP???

Thanks for reading... Any feedback would be great on next thing to do

Cheers

 

[Jamie M]

Not sure if it screams of cross coll - sounds more like a borrowing capacity issue due to mat leave income.

Anz and nab broker are two lenders I know of that will consider mat leave income.

Cheers

Jamie

 

[teddy1]

Not sure if it screams of cross coll - sounds more like a borrowing capacity issue due to mat leave income.

Anz and nab broker are two lenders I know of that will consider mat leave income.

Cheers

Jamie

Hi Jamie,

My main point was ANZ putting funds from the sale of PPOR onto the IP loan and balance into savings, why did they do this And not put it all into the savings account? Apart from the contract stating so...

 

[NPB]

Evening All,

Just after some guidance/thoughts on the below issue my friend is going through. I'll try and explain the best I can with most of the facts.

- Purchased IP OTP 5yts ago
- construction completed 18 months ago with tenants placed
- during this time they purchased another IP then turned into PPOR purchased and been living in for 3yrs+
- sold PPOR this year
- docs signed and upon settlement of funds ANZ took 60% and put them into IP1 with the balance put into there savings
-met with broker and they can't borrow anything or use equity as partner is on maternity leave, now needs to go back to work so they can buy a new PPOR or move into IP1. They are renting now

This screams of cross collaterisation but what did ANZ broker set up in original contract that paid the finds into the IP???

Thanks for reading... Any feedback would be great on next thing to do

Cheers

sounds like X coll to me, ANZ controlled the funds from the sale and paid down the loan on the remaining IP to the original LVR.

example number 9999999999999999999999999999999 of y not to X Coll, now at a time they need access to the funds for a deposit for the new PPOR they are restricted. When they do eventually get the funds the new PPOR is going to have a massive O/O debt and the IP a lower debt than it should. All caused by lazy and inappropriate structuring.

 

[Terry_w]

Yes def cross coll.

Since the loans were crossed they would need a new valuation and assessment of serviceability to release mortgage. With one not working they would have had to reduce the remaining loan balance to the point of servicing.

These poor people have no paid out a tax deductible loan because they used a bank staff member to set up their borrowings. This is going to cost them tens out thousands in extra tax over the years.

How much was the OTP loan reduced by?

 

[teddy1]

Yes def cross coll.

Since the loans were crossed they would need a new valuation and assessment of serviceability to release mortgage. With one not working they would have had to reduce the remaining loan balance to the point of servicing.

These poor people have no paid out a tax deductible loan because they used a bank staff member to set up their borrowings. This is going to cost them tens out thousands in extra tax over the years.

How much was the OTP loan reduced by?

I thought as much

They/ ANZ put 250k onto the IP loan!

So should they refinance to get out of ANZ?

 

[Terry_w]

I thought as much

They/ ANZ put 250k onto the IP loan!

So should they refinance to get out of ANZ?

ANZ are not really the problem and the damage has been done, moving now won't change things.

$250,000 x 5% = $12,500 per year in lost tax deductions. This may amount to $5,875 cash in their pocket each year.

Imagine if you paid an extra $5,875 pa into the new PPOR loan and how much faster it could be paid off or if you invested $5,875 into an index fund and sat back and waited 30 years (or did both)

 

[Jamie M]

Hi Jamie,

My main point was ANZ putting funds from the sale of PPOR onto the IP loan and balance into savings, why did they do this And not put it all into the savings account? Apart from the contract stating so...

Ahhh right - sorry, I misread it.

Cheers

Jamie

 

[teddy1]

ANZ are not really the problem and the damage has been done, moving now won't change things.

$250,000 x 5% = $12,500 per year in lost tax deductions. This may amount to $5,875 cash in their pocket each year.

Imagine if you paid an extra $5,875 pa into the new PPOR loan and how much faster it could be paid off or if you invested $5,875 into an index fund and sat back and waited 30 years (or did both)

What can/should they do now Terry?

Thanks again

 

[Terry_w]

What can/should they do now Terry?

Thanks again

learn from their mistake. And tell others so they don't make the same mistake.

I don't think they would have any legal recourse against the bank, but they should check with a litigation lawyer. Maybe complain to the bank and then credit ombudsman.

 

[teddy1]

learn from their mistake. And tell others so they don't make the same mistake.

I don't think they would have any legal recourse against the bank, but they should check with a litigation lawyer. Maybe complain to the bank and then credit ombudsman.

I know the wife sent a long letter to ANZ - They have heard nothing back...

Thanks for all the replies

I didn't think they could do much now except wait it out.

 

[Terry_w]

She should send it to the special section invovled with complains. They will respond if she gets it to the right section - details are on their website.

 

[teddy1]

They have responded

"Too bad, you signed the contract" pretty much....!

Thanks again Terry

 

[Rolf Latham]

try the FOS contacts

no guarantee of any result,but id be VERY suprised if you dont hear from them within 72 hrs

"lack of appropriate disclosure about cross collateralised lending structure" might be a good intro

Member details
Date joined: 1/07/2008
Website: www.anz.com.au

Complaint contact
Complaints Resolution Centre
Complaints Resolution Centre
Australia and New Zealand Banking Group Limited
Att: Simon Mallia - EDR Operations Manager
Level 1/570 Church Street
Richmond VIC 3121
Toll Free No: 1800 988 899
Fax: 1800 269 030
Email: [email protected]
ta
rolf

 

[imbi3]

Banks can reverse the transactions if you can get the right people or department to do it

 

[Terry_w]

Banks can reverse the transactions if you can get the right people or department to do it

This would be like trying to re-attached a severed leg. Major surgery.

 

[Rolf Latham]

This would be like trying to re-attached a severed leg. Major surgery.

its doable though, have had external refinances totally refis totally wound back

ta
rolf

 

[willy1111]

Evening All,

Just after some guidance/thoughts on the below issue my friend is going through. I'll try and explain the best I can with most of the facts.

- Purchased IP OTP 5yts ago
- construction completed 18 months ago with tenants placed
- during this time they purchased another IP then turned into PPOR purchased and been living in for 3yrs+
- sold PPOR this year
- docs signed and upon settlement of funds ANZ took 60% and put them into IP1 with the balance put into there savings
-met with broker and they can't borrow anything or use equity as partner is on maternity leave, now needs to go back to work so they can buy a new PPOR or move into IP1. They are renting now

This screams of cross collaterisation but what did ANZ broker set up in original contract that paid the finds into the IP???

Thanks for reading... Any feedback would be great on next thing to do

Cheers

What LVR did this leave on the remaining security?

 

[Terry_w]

Yes it wouldn't hurt to give it a go.

 

[turk]

Perhaps worth checking the original contract to make sure it was collateralised.

Banks have been known to make errors or take advantage.