Correcting mistakes from past

[Melbournee]

Hi all,

Got a PPOR (Loan 1) and an IP (Loan 2) with the same bank.

Found out that the IP-(Loan 2) is "guaranteed" by Loan 1 (PPOR).

Are there ramifications only if I default? or should I be concerned for anything else (future purchases etc)?

Any way to undo this damage? I mean anyway I can remove this guarantee?

I was thinking over the next year or so of taking my IP(Loan2) to another bank and this can be solved as a byproduct?

 

[tobe]

if you do a search here on Xcoll, you will get some opinions. generally speaking the only advantage to xcoll is to the lender, or the person doing the work. You can have the exact same outcome with seperate loans either with the same lender, or 2 diferent ones.

 

[marg4000]

If you default on any loan the lender will come after you for any other assets you own whether they are mortaged to that lender or not.

If they have the security it simply makes the process easier for them.

But they will get the money out of you by any method they can.

Consult your lender or broker. Once you are down to the LVR the lender wants you can probably untangle the loans, but undoubtedly there will be costs, as there will be with refinancing.
Marg

 

[Bradsdad]

Depending on the LVR's involved it and lender, it may be a pretty simple task. You never know but with all the "competition" over the past week, they may even waive the fee if you threaten to walk. Just ensure you have a quote up you sleeve that makes them feel threatened.

Regards
Steve