Getting titles back

From: Simon and Julie M


Hi all

Has anyone got any tips on how to get titles back from the bank when your equity has grown across your portfolio?

How easy is it to regain possession of one or more of your titles from your lender without further borrowing, assuming stand-alone loans? Has anyone had experience with this?

Julie M
 
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Reply: 1
From: Lotana Von Amor


Excuse my ignorance, but what would be the benefit in doing so?

Regards,

Lotana
 
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Reply: 2
From: Rolf Latham


Hi Julie

Release of security

Pretty much standard reval policy. Do as much homework as possible on what you want the val to be, allhomes, reported sales, listings etc.

Accompany the valuer and ensure they know your expectation and your logic.

Be realistic and unemotional (ha !), but I spent 12 weeks renoing that thing, whaddaya mean its only worth X.

The benefits of untying crossed securities are many:

1. You can place the security with another lender that has better rates or that may allow a no docs loan if youre out of serviceability.

2.Its just good risk managament to limit the amount of security offered for your loans. After all if the video store asks for a $ 50 security deposit you dont say "here, have a hundred).

3. Emotional comfort. Having title deeds in your safe custody allows you to take more emotionally balanced decisions with regard to your finances. You know you have something to fall back on. I usually suggest getting the deeds back to your PPOR as a first priority.

4. It makes your lender sit back and look up. Somtimes they even work out whats going on and give you better service.

5. Keep the valuers and the document preparers employed :eek:)

6. Revalue your current stock, This gives you an idea of what the market thinks you are worth and gives you a guide as to whether your strategies are going to get home soon. just like any business its good to know where youre at.

Ta

Rolf
 
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Sim

Administrator
Reply: 2.1
From: Sim' Hampel


I'm not sure I understand this...

Are we talking about getting title back on a property which is still mortgaged (ie. title held by mortgagee) ? Can you do this ?

I understand the act of undoing cross-collateralised loans, but the question implied getting title back on stand-alone loans ??

I'm confused.

sim.gif
 
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Reply: 2.1.1
From: Rolf Latham


Hi Sim

Theres a portfolio of properties securing loans. I took Julies position to be that they have sufficient equity to release props and still have sane LVrs.

Ta

Rolf
 
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Reply: 2.1.2
From: Simon and Julie M


Rolf
Thanks for your info - very helpful!

Sim
Yes, property is mortgaged. I am aiming at paying out the loan by increasing loan on other property by way of equity increase without further borrowing, resulting in consolidating portfolio.

Regards
Julie
 
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Reply: 2.1.2.1
From: Manny B


Hi Julie,

I've done something like you want to do... firstly I managed to get a title back from a unit site I built, as they held the title for the land before I built, but once I built I wanted at least one title back, as the unit values were way more than the loan amount... all I got was the council valuation (once I subdivided them) & took it to the bank & they released a title, which is now in a safe deposit box... as Rolf mentioned, it allowed us (my wife in particular) to sleep better knowing she has control over a couple of titles which we can utilise in the future with our next purchases as security OR LOC (can go to any bank rather than being tied up with the one bank, we see it as having more bargaining power)...

Now, in terms of releasing it, as I mentioned once I gave them the council valuation/rates bill (could have got a valuer, but the council valuations were adequate) & I just filled in a couple of forms & within a couple of months I had the titles in my hand (the fees were minimal, if I recall it was only around $200 for bank & titles office, not much at all)...

Cheers,

Manny.
 
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