Finance problem...

[andypower]

This is one for the finance people.....

Ok here goes

100% FInance is needed for a 78K place in a country town north of melbourne.
The person is in the house under liscense and has been for 5 weeks. She has 3 kids and an income from gov support etc of 28Kpa.

She has a house in the yarra valley with a morgage of 110K and it has just been put on the market for 175K just last week.

So she might get 50-60K out of that but not until someone actually buys it and settles.


So she has basically moved into this new place with no deposit down and is under liscence.
ANZ were going to do 100% finance for the property, but they found out the zoning was industrial and they pulled out.

The settlement date of the new place has come and gone and the owner is screaming. Now he has threatened to sue. Well he should not have let her in, in the first place......I think its a country town thing anyway...

One other option she has is to involve her ex husband who is earning 31K.....he is willing but she would like to avoid it.

So she would need bridging finance to fight off the owner.

She tells me that the solicitor has said that she signed an "unconditional contract" but then she tells me there is a "subject to finance clause".....make of that what you will. I don't understand that.

She doesn't want to put her kids through another move anyway.

It seems the industrial zoning is a problem has anyone else come across it?

Thanks in advance

 

[Rolf Latham]

Hiya AP


Industrial zoning does not bode well, but should still be doable if the equity is enough which it would appear to be. I am assuming that ANZ hold the MOrtgage to the other property and the vals are in the ballpark.

even if they will only lend to 70 % of the new place then it should float.

Much depends on whether the lender actually wants to take a mortgage over the new security - it may be unsuitable for a residential mortgage.

I suspect serviceability may also be an issue here.

Question is ANZ would have known what they were taking as security from the start, why would it take them weeks to decide its not on ?

She could try the NAB, I have seen instances of them taking "anything" as security

ta

Rolf

 

[andypower]

Thanks Rolf,

There are a few pieces to the puzzle in this one which I'm not aware of, but some people seem to attract problems. It would seem she is one of them.

Thanks for your opinion I'll let her know.

and I've pointed her towards another broker and with her security, as you say it should wash...

Thanks again,

Andypower