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From: Lucky Man
I am writing to seek some help from this forum. I have one ip which i recently refinanced with another bank, called New Bank (not the real name).
New Bank agreed to payout the mortgage due to the previous bank of $250,000 and then issue me with a new LOC for $250,000 secured against the property which is valued at $300,000. In other words, I was to owe New Bank $250,000 under a drawn LOC.
When the loan was settled 2 months ago, I noticed that the LOC was not drawn down. In fact, the customer service told me that the $250,000 LOC was undrawn. I went into internet banking and sure enough, i was able to transfer money from this LOC account into other accounts.
The bank had made a big stuff and given me an undrawn loc of $250,000 instead of a drawn loc of $250,000. I hope this is not confusing everyone... but i am trying to work out what i should do.
I am about to buy my second ip and i really want to take advantage of the bank mistake. It has been several months since the stuff up and the bank has not picked up on it. Until now, I have not used the loc at all.
To the mortgage brokers on this site, what are the chances of the bank finding out this mistake if i use the loc funds? To lawyers types am i breaching any laws by taking advantage of this bank error.
Thank you for your help.
F_ingluckyman
I am writing to seek some help from this forum. I have one ip which i recently refinanced with another bank, called New Bank (not the real name).
New Bank agreed to payout the mortgage due to the previous bank of $250,000 and then issue me with a new LOC for $250,000 secured against the property which is valued at $300,000. In other words, I was to owe New Bank $250,000 under a drawn LOC.
When the loan was settled 2 months ago, I noticed that the LOC was not drawn down. In fact, the customer service told me that the $250,000 LOC was undrawn. I went into internet banking and sure enough, i was able to transfer money from this LOC account into other accounts.
The bank had made a big stuff and given me an undrawn loc of $250,000 instead of a drawn loc of $250,000. I hope this is not confusing everyone... but i am trying to work out what i should do.
I am about to buy my second ip and i really want to take advantage of the bank mistake. It has been several months since the stuff up and the bank has not picked up on it. Until now, I have not used the loc at all.
To the mortgage brokers on this site, what are the chances of the bank finding out this mistake if i use the loc funds? To lawyers types am i breaching any laws by taking advantage of this bank error.
Thank you for your help.
F_ingluckyman
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