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
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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