LOC freezes

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From: Ayesha Todd


Hi everyone, a question that I think I can answer myself but incase I am missing something i thought I would ask if there is anyone I can approach about the situation I now find myself in. Also a warning to anyone that may unfortunately find them selfs in the same situ.
Story goes, we have a PPOR + 2 IP's, we decided to sell our PPOR and go back to rental and invest money into another IP. No problem so far. The PPOR has been under a LOC loan, we had exchange of contracts on the sale, the purchases signed the contract agreeing to a 4 week settlement and 10% deposit. All sounds rosie, right? Well No, Purchases have not settled (settlement date a week ago, our solicitor has issued them a notice to settle giving them 14 more days, so they have till the 29th.) We have also found out the purchasers have only paid 5% to their solicitor not the 10% as per the contract.
Well the BIG problem occurred that we thought because settlement has not gone ahead we'll transfer the money we had sitting in the new everyday account into the LOC, and we'll redraw the money as we require it, sounds ok, except on the day of settlement the bank froze the LOC and all the funds we thought we would have had access to, we no longer have access too. Now we didn't find this out till when we looked at our accounts on-line their was Zero balance available? Bit odd we thought, call to the loan centre informed us the account had been frozen and no we didn't have access to the funds. Problem is that our budget meant we had to draw some of those funds at the end of the week, + pay the c/c attached to it.
Is their anyone within the banking industry I could contact to arrange access to some of these funds as we don't know IF or when settlement will actually go through or not.
Any comments or reply's can be forwarded direct to me or post to the pages.
Thanks Ayesha
 
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Reply: 1
From: Rolf Latham


Hi AT

Common problem. Call the loan service centre of the lender concerned. They should be able to provide access after a botched settlement

ta

Rolf
 
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Reply: 1.1
From: Alex Investor


This happened to my Brother, just ring up the loan centre.

Its not Westpac is it?

alex
 
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Reply: 1.1.1
From: Ayesha Todd


Funny you ask if it is westpac, because yes it is, but oh well, till now we have received good service from them.
Our late evening call to the loan centre on Friday was of no help, but hopefully a call to them this arvo will be more productive. All the guy said on Friday was, 'oh yes, we can see that you had available funds, but unfortunately the account was frozen'. My other half doesn't like to argue so didn't take it further, me well if it is possible to do I usually battle on till it is done.
 
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