Anz backdoor!

Discussion in 'Legal Issues' started by teddy1, 21st Apr, 2015.

  1. teddy1

    teddy1 Member

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    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
     
  2. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    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
     
  3. teddy1

    teddy1 Member

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    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...
     
  4. NPB

    NPB Member

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    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.
     
  5. Terry_w

    Terry_w Member

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    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?
     
  6. teddy1

    teddy1 Member

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    I thought as much

    They/ ANZ put 250k onto the IP loan!

    So should they refinance to get out of ANZ?
     
  7. Terry_w

    Terry_w Member

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    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)
     
  8. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Ahhh right - sorry, I misread it.

    Cheers

    Jamie
     
  9. teddy1

    teddy1 Member

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    What can/should they do now Terry?

    Thanks again
     
  10. Terry_w

    Terry_w Member

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    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.
     
  11. teddy1

    teddy1 Member

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    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.
     
  12. Terry_w

    Terry_w Member

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    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.
     
  13. teddy1

    teddy1 Member

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    They have responded

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

    Thanks again Terry
     
  14. Rolf Latham

    Rolf Latham Member

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    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: yourfeedback@anz.com
    ta
    rolf
     
  15. imbi3

    imbi3 Member

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

    Terry_w Member

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

    Rolf Latham Member

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

    ta
    rolf
     
  18. willy1111

    willy1111 Member

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    What LVR did this leave on the remaining security?
     
  19. Terry_w

    Terry_w Member

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

    turk Member

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

    Banks have been known to make errors or take advantage.