Bank bungle causing a headache

mystery

mystery

Hi all,

Just a frustrating rant from me ..... We rare in the process of purchasing two properties in the Ipswich area. Obviously we signed individual contracts for both properties and have a 45 day and 60 day settlement on them.

I went to our lender who we have other I/P loans with and initiated the loan process. Our loans were approved, but I now find out that the branch manager put through a combined loan application for both properties.

The problem we have now is that our settlement lawyers are due to settle the first property on the 28th May and the second property on the 18th June, but the bank is saying that they must settle on the same day as they will only forward the total loan amount (2 property purchase costs combined) and not split them. In our approval letter they state two loan account numbers, but will only release the funds in one transfer, .... crazy

I have the lawyers panicking as she's not sure whether she can get one settlement put back or the other brought forward to the same day. I have gone back to the branch manager and told her to fix it. I have an email to say she will call me in the morning with some news.

Anyway ..... I've always enjoyed the purchasing process of property investing, but this is leaving a sour taste in the mouth. Think I'll be using another lending institution next time.

thanks for listening

martin :mad:
 
They really are hopeless. My mother had a truckload of trouble getting to talk to an actual "person" regarding having some cross-col properties released so that she could move the properties into a trust. No problems, said which bank. Three weeks later, mum phoned and NOTHING has been done. Oh sorry, I gave that job to someone else and they don't seem to have done anything with it. But call me anytime you want anything done, and I will make sure I get it done, yeah right!!!

Actually in the same phone call, mum had all sorts of fees waived, so it worked out okay. She asked the banker on the end of the line why don't they waive these fees for those that do not ask. Answer - because they do not ask.

I worked for this crowd for 20 years but have no loyalty to them. They would screw ex-staff as quickly as the general public.

Wylie
 
what can one say? banks! :rolleyes:

i think all of us have had an experience. we we purchase and new property so asked, and filled out the loan docs, for our loc to be increased by $x for the new purchase. settlement day came. what did the bank do? they had only "increased" the loan to $x (which came to about $15,000 disposable cash - not enough to buy much of a house!).

needless to say i was furious - and they insisted i had to fill out all new loan docs, because of their stuff up.

banks are unbelievable on what they get away with.
 
An update from today's events..... basically, the bank lumped together both our loans into one, even though they provided 2 loan account numbers. This means that if for some reason we sold or paid out one property, it would only reduce the loan amount not clear the loan as the loans have been combined.

The branch manager has admitted stuffing up, but she has been told that nothing can be done.

The poor settlement lawyer has to try and delay one settlement or try to get the other one to bring settlement forward as the bank demands that both properties settle at the same time even though we gave them copies of the signed contracts with individual settlement dates and terms stated. Apparently this was missed when the loan went through. I just hope that we have understanding vendors.

I now have to deposit two lots of purchase costs straight away so that when the dates are set we can settle. This is a real pain as the second property wasn't due to settle for another 4 weeks, so this leaves our personal account more drained than we wanted.

Anyway ..... the loan we have is for 12 month fixed, so at the end of this period I will be going into the open market to re-finance away from the current lender.

It is a real pain, but it can be fixed with time. Think I'll use a mortgage broker next time. Mind you ... I suppose I should have been more vigilant, but you just expect the banks to know its own business and to follow simple instructions.

Lesson learned .....

Thanks for reply's

Martin
 
Funny... If you were James Packer the bank would be sweating that you didn't sue their a*s*. Instead you've gotta grin and bear it and be thankfully that they don't deny you the whole lot. What a bunch of wa**ke*s
 
While we are at it, just wanted to know ...
In an IP Loan, if everything's approved .. bank docs signed in abt 4 weeks,
but there's another 4 weeks for settlement ...
what happens if you want to settle before the "Settlement Date"
i.e if the Vendor agrees to it , would the Bank(s) be flexible in this matter ?

Anybody has had any such experience ?
 
Hi Ausieblogger,

Yes, the banks can move settlement. Just let your solicitor know, they'll talk to the other side and the banks and if all parties are agreeble they'll co-ordinate early settlement.

Cheers, Medine
 
auzieblogger said:
i.e if the Vendor agrees to it , would the Bank(s) be flexible in this matter ?
Click to expand...
It might depend on the vendor's circumstances.

If it was not the vendor's PPOR, then a settlement four weeks earlier might bring a CGT payment into the current financial year- which the vendor might not be keen on.

Also check on land tax for yourself. In some state, the person who holds the land at June 30 pays land tax for the entire financial year (In NSW it's December 31).
 
good news

Our settlement lawyer managed to arrange for both vendors and the bank to agree to settle this Wednesday 28th, ...... A very frustrating time, but looks like its all sorted now.

Martin
 
Hi Mystery.

I was kidding. Was supposed to be "another spanner in the works" hurdle.

Poor humour on my part.

Regards
Marty
 
I thought it would be strange having a bank holiday on a Wednesday .... I used to have a sense of humour before this purchase .... :(
 
Good news

Just to finish this post, ..... we settled both properties last Friday (8th June). The settlement was delayed one week due to one of the vendors solicitors needing more time. It has been a major juggling act, but it has paid off. Properties are worth more now than when we bought.

Off to Adelaide now to pick up a couple more, but I've already set the ground rules in place with the bank ...... individual title loans only.

Thanks for all the reply's.

Martin .....
 
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