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From: Ayesha Todd


Hi everyone, just buying our first IP in Perth, and decided to use Homepath for finance (Cheap rates, no est fee, no monthly fee.) Even though we got pre approval easy enough, we are having major difficulty getting people on the other end of the phone to confirm formal approval and give us information on the progress of the loan app. Just wondering if anyone else has had difficulties with this mob, or it is a one off as our normal rep has gone on leave? We are thinking of pulling the pin on them and going else where and extend settlement date, so if anybody has good or bad stories please let me know.
 
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Reply: 1
From: Jacque Parker


It's not just Homepath that keeps you hanging on and frustrated, Ayesha. My current lender is an absolute snail. I make calls every second day, send e-mails, leave messages and still the progress is slow, so I know how you feel. FED UP!

This will be the very last time I use this particular lender (and I won't publish the company name here as I'm sure there are better and faster people than he in the actual firm!) and I will be letting him know this, when the time comes. However, in the meantime, I can only do as you must be doing, and constantly call to check up how the loan is going.
Is it approved yet?
Is it approved yet? What's the holdup?
Is it approved yet? What's the holdup now?
Is it approved yet? Yes, I know the valuer's on holidays but can't you call him? etc etc
Sigh....!

Ahh... the not-so-fun-side of property investing. Good luck with it all, Ayesha, and if you do change lenders and get it all done more efficiently, let us know how you go!
Cheers, Jacque :)
 
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Are you sure it's not the LMI group???

Reply: 1.1
From: Les .



G'day all,

Before getting too "bent out of shape" with your lender, do your loans require Lender's Mortgage Insurance? (i.e. greater than 80% LVR?) If so, I'll bet you 10 to 1 that it is the Mortgage Insurer that is holding you up.

And, having had these darlings screw up my last two attempts to secure another IP, I now believe a RE agent who said "If your lender says your loan should be through in 2 weeks, make sure you have 4 weeks spare before you REALLY need the loan."

He was SO right !!! And I'm sure the FHOG has really put the pressure on the LMI groups too. So many more people out there buying their first home, and you can just bet that 95% of them will be buying on 95% LVR too. So you are just another poor sod in the queue .......

Oh, and by the way, MY lenders had ALSO said to me "Yeah, no problems, should be through in 2 weeks" - but they lose all control once it disappears into the LMI office. And THEY are not allowed to "chase down" the LMI group for updates either ..... (shades of the "Untouchables")

Good luck - I hope you have another 2 weeks to go before you REALLY NEED your loan....

Regards,


Les


- "Eschew Obfuscation" - ;^)
 
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Reply: 2
From: Bob Quiggin


Yes, I've used them twice.

This IS par for the course.

The first time we had an absolute idiot who ****ed us around so much that we wrote a really snarky letter threatening to go to another lender until we got a fast response.

They remembered us the second time :).

The third time (refinancing the first time) service was pretty darn prompt too and they were asking when the fourth time was going to be.

So we went to another bank. :) :) :)

Lesson: TELL them, phone them and demand to speak to a supervisor (like Rachael, who's really good) and you'll get a good result. They are into the business of square pegs and square holes and as property investors we tend to be triangular pegs into rhomboid holes.

But all it needs is a bit of pressure.

Best of luck.
 
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Reply: 3
From: Rolf Latham


HI AT

Homepath is the CBA's cheapo arm.

You dont get a European Car at a Hyundai Price.

Ta

Rolf
 
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Reply: 3.1
From: Crystal .


Hi Ayesha,
I had a lot of problems with Homepath. They are based in Melbourne, (I'm in Sydney) so whenever I would call (every day) to ask if my loan had been approved, they would ask me "When is settlement date?" and I would reply "I cannot have a settlement date until I exchange contracts and I cannot exchange contracts until you approve my loan!"
They didn't seem to understand!
My solicitor warned me about using the no frills lenders but I had used another non bank lender in the past and it was much less painful.
My brother was gazumped because he had to wait so long for his approval (he didn't call every day!!!)
If you have plenty of time and/or the patience to call every day and speak to inexperienced staff.... enjoy the low interest rates.
If, however, you have found the perfect property, I would not risk losing it because your finance takes too long to be approved.
Good Luck,
Crystal
 
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LMI

Reply: 1.1.1
From: Brett Burt


This is a multi-part message in MIME format.

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Content-Type: text/plain;
charset="iso-8859-1"
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Exactly right. Mortgage Insurers are a law unto themselves. You cannot =even question their decision or speak to them if you are a member of =the public/client. Even if you are a broker or originator they will not =allow you to quizz them. They will not give you the lending policy as =the criteria they us is changing all the time. The are truly the =faceless men/women of power. And they are getting even tougher as the =economic scenario weakens.

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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">






Exactly right. Mortgage Insurers are a law unto =themselves.
You cannot even question their decision or speak to them if you =are a
member of the public/client. Even if you are a broker or originator they =will
not allow you to quizz them. They will not give you the lending policy =as the
criteria they us is changing all the time. The are truly the faceless =men/women
of power. And they are getting even tougher as the economic scenario =weakens.


------=_NextPart_000_002E_01C1AE3A.6DFE40C0--
 
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Reply: 3.1.1
From: Frank Shead


I feel you get what you pay for.
Go for cheap and the return is cheap. Perhaps a little more interest and you get good service and far better results
Frank Shead
 
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Reply: 3.1.1.1
From: Steve B


I applied for a loan with N.R.M.A. Building Society and it took then (1) one month for me to get approval and I worked for the place.
Steve B.
 
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Reply: 3.1.1.1.1
From: Rolf Latham


Hi all

On the subject of slow lenders.

Every now and then I have a situation where an application is no longer required.

Since most lenders lodge the app on the CRAA lst the day they receive it I thought I would let some of these run on and se what happens to deals that are not chased up.

The record so far with no response is 4 months. My client found it amuisng the other day when she received an apolgy note from the lender that it was taking so long, since the deal had setlled elsewhere weeks ago.

Ta


Rolf
 
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Reply: 3.1.1.1.1.1
From: Ayesha Todd


Hi everyone, thanks for all the comments, we finally got finance approval at the last minute, (15 minutes before deadline)and for those that questioned no it wasn't a lenders mortgage insurance problem, that was the fastest part of the whole deal. We have now been asked to extend settlement date (we have two weeks to go) as they cannot guarantee that they will have docs ready for it.....of course the vendor is not happy about it and when we requested their request in writing they said they don't think it is possible to do that......what do we do....risk settlement date as is or have the vendor pull out and possible fine us as they don't wish to extend settlement date (for the second time on homepaths request (first time was at the start of the process by 2 days). It is all very frustrating and confusing since it is the first major IP we purchasing.
 
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Reply: 3.1.1.1.1.1.1
From: Les .



G'day Ayesha,

You poor kid - what a nightmare introduction to IP's. But don't give up, and you will learn SO MUCH that the next one will be a pushover.

First, you said you have two weeks - is that with, or without the extension?

Second, have you talked with your solicitor re your options? If so, was he/she helpful? And what was suggested?

Third, it is natural the vendor will be upset - see if you can determine the vendor's position (e.g. do they need to have this one sold to allow them to settle on their next one?). Depending on just what their situation is, you can tailor your next move to ease the situation and let you go ahead.

Ideas - (hoping that you really do have two weeks anyway, with an extension to 4 weeks possible....)

Is the lender saying they need more than two weeks to arrange docs? If so, it might be time to beat on a Manager's desk!! Even via a Solicitor's letter if the personal approach doesn't galvanise them into action.

To make the deal go thru, look at the possibility of bridging finance (your solicitor can probably help with this - ask him). Note that I've never used this path, so I don't know how quickly it can be arranged, but 2 weeks should be heaps.

What about the vendor? To save the deal, are they in a position to allow the extra time (maybe with a sweetener for them if required). Check with solicitor re the possibility of getting compensation from the lender for the stuff-up - doesn't hurt to ask..... Maybe they can pick up the "sweetener" amount to the vendor?

Rolf would probably have some extra suggestions too - hope he's still reading this string.....

Through all this, become a REAL PEST on the phone to the lender, your solicitor, and whomever else is required. DON'T accept "It's all OK now" messages from ANY of them. Keep pestering and pushing to get each step done sooner than they say. (I've found from bitter experience that "It's all OK" often means "It's off the rails, but I want to buy time for now and I'll take the flak from you later..." It can also mean "It's all OK, but I'm a junior who really doesn't know the full story, but MY part of things is all OK...")

Become Winston Churchill for the next two weeks.... "Never give up, never give up, NEVER give up!"

Good luck - keep swinging, and keep in touch. We can all learn heaps from your experiences/triumphs/lessons/anxieties - and(hopefully) we can help you too,

Regards,

Les


- "Eschew Obfuscation" - ;^)
 
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Reply: 3.1.1.1.1.1.2
From: Rolf Latham


Hi Ayesha

I have found the words " Banking Ombudsman" do woderful things to move slow lenders forward.

This is especaily so where you are at risk of financial or other consequential losses as a result of the lenders tardiness.

If you have done everything on time and in the right order etc, you are within your "common law" rights to ask for compensation of any costs incurred.

My suggestion to you is that if they can not give you a fixed date of finance provision on writing then stuff the low rate, move somewhere where they care about your business and get the deal done. What state are you in ?

Ta

Rolf
 
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Reply: 3.1.1.1.1.1.1.1
From: Ayesha Todd


Hi Everyone, Just to let you know after many phone calls to just about everyone concerned and much grit and determination settlement went through on the correct day (yesterday) and everyone was happy.
Thank-you to all that lent a word of advice.
Now we just have to rent it out!!! :)

One word of advice to first time investors, don't give up, stick to your guns, find out your boundaries but tell the lender (we found out we had three working days grace on settlement though didn't tell the lender this) and persistence does pay off.

Ayesha
 
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