Finance food for thought in current crisis

[bianca]

Hi there,

I received an email promoting the RENO KINGS next workshop,in which they will be focussing on the following points:

1-Valuations are coming in lower than most property investors are hoping for. How could that affect your refinancing plans?

2-We've been told that bank policy allows them, at their discretion, to reduce or even wipe out your undrawn Line of Credits. Check your loan documents to confirm this. What could that do to your financial future?

3-Does your bank policy also allow them to transfer your ‘safe’ cash deposits, without your permission, to pay off any outstanding loans you have with them. Your buffer could be wiped away with a pen stroke, then what?

4-Did you know that lending policy has changed significantly and this might be a problem if your Interest Only loan is coming to the end of its term within the next 12-24 months. When does your loan come to the end of its term?

5-As a consequence of falling resource prices, certain forecasters predict house prices in some areas may drop by 30-50% in the next 3 years? Are you invested in these areas? Will it affect you?

Does anyone care to comment, especially on points 2,3 and 4? The possibility, probability and possible solutions?

 

[boomtown]

2. Deal with it.

3. Hold your cash deposits elsewhere.

4. Most I/O loans just roll back onto P/I. I think its unlikely you would get refused an I/O extension unless you had other problems.

 

[evand]

Its marketing using scare tactics to promote their workshops/seminars.

Do your own research and come to your own conclusions. Act accordingly.

 

[Rolf Latham]

Not an unusual marketing technique employed in recent times.

There is some OBVIOUS truth, but some of it is dooms day stuff, while always possible its unlikely.

ta
rolf