Getting worried is it cross-collateralization?

[lily11]

Hey, could anyone pls tell me if this is a cross- collateralization?

Just look the old contract like this:

Total maximum amount of loans: $C (A +B)

Loan A......

Loan b......


Security
The following will be security for this contract. You r not obliged to give any new security to westpac but your loan cannot be drawn until the security is completed and signed in the form required by westpac.

1). A new mortgage over the property at .....
2). A new mortgage over the property at ......

What should i do and can do If it is? I am getting quite anxious now cos the value has gone down for one property.

Thanks

 

[Jamie M]

Hiya

It looks like they are.

Whether or not it becomes an issue depends on your longer term plans.

If it's just the two properties that are crossed up then it might not be too difficult to tidy up the current structure.

Cheers

Jamie

 

[Terry_w]

Hey, could anyone pls tell me if this is a cross- collateralization?

Just look the old contract like this:

Total maximum amount of loans: $C (A +B)

Loan A......

Loan b......


Security
The following will be security for this contract. You r not obliged to give any new security to westpac but your loan cannot be drawn until the security is completed and signed in the form required by westpac.

1). A new mortgage over the property at .....
2). A new mortgage over the property at ......

What should i do and can do If it is? I am getting quite anxious now cos the value has gone down for one property.

Thanks

Yes they are. If you have time get the loan restructured. If you must settle then apply for a variation after the dust settles.

 

[Rolf Latham]

dont be worried but be concerned and fix it ifyou can

Cross coll in isolation isnt a major problem, its only as time and portfolio moves on that the risk multiplies

ta
rolf

 

[Aaron_C]

Classic X-Coll. fix now.

 

[lily11]

Thx Jamie , Rolf and Aron for your information. Appreciate

 

[lily11]

Thx terry