Oh dear...

We settle on a new property on Monday with a new lender and have submitted a Partial Discharge from ANZ leaving two loans and a small LOC against one dual occ property in north west Sydney - all up around 80% LVR.

ANZ have come back to say they want us to reduce the remaining loans to 60% LVR which means we have to come up with $96 000 by Monday week :eek: to meet they discharge criteria.

I spoke with the Lending Manager who said they have requested this because the previous loans were done on a Low Doc basis. Only the LOC was done on a Low Doc basis. All other Loans with ANZ were Full Doc. The Lending Manager has gone back to the Discharge Supervisor to get them review the request and hopefully agree to the 80%.

Is this common? What are our options?

Any advice hugely appreciated! I am trying to remain very calm and breathe very deeply. There is a bottle of port on my desk that could be empty by lunchtime... :D
 
was LMI paid on the LOC to 80 % ? If yes, then its possible that the whole expsoure is covered by LMI depending on how old the loans are.

whats the total loan exposure and the amount of LMI paid ?

Common yes, you may have legs on this though

ta
rolf
 
Have to agree with Rod on this one - this is one of the reasons you should consider having your loans with different lenders or at least have your loans uncrossed if they are with the same lender.
Check to loan offers though as sometimes the Banks will try this on even though the properties are not crossed.
 
Apparently they want finances to re-assess the whole remaing portfolio to 80% because the LOC was low doc.

We are in a serious pickle.

I read today that the Chinese word for crisis also mean opportunity so I am trying to see the opportunity in here. Hmmmm...
 
Apparently they want finances to re-assess the whole remaing portfolio to 80% because the LOC was low doc.

We are in a serious pickle.

I read today that the Chinese word for crisis also mean opportunity so I am trying to see the opportunity in here. Hmmmm...

I hope things work out ok. :(
Could you get your entire portfolio revalued to see if you can scrape together enough equity to make up that extra LVR margin? I'd use a panel valuer, but not do the valuation through the bank itself in case your valuations come in lower than bank's current figures... then get bank to reval portfolio if it comes out well.

Dunno it this'd work. Just a thought...
 
Apparently they want finances to re-assess the whole remaing portfolio to 80% because the LOC was low doc.

Hi GTF

Is this a typo? Don't you mean 60%? I can't be much help I'm afraid but can suggest a couple of things.

Will they let you pay extra LMI to go to 80%? Do you have a share portfolio? If so you may be able to get a margin loan on shortish notice to cover this? Otherwise it's probably a bit much to whack on some credit cards... :eek: I'm assuming here you aren't in the position to give ANZ any more security over business / personal assets or otherwise?

Good luck with it either way...
 
Hi Melissa

I hope you can sort out the finance and things work out fine for you. You have jumped hoops for this purchase and I'm sure when it's all done and dusted, you will say 'it's been worth it" !

Cheers
 
It is a mess. Its the kind of mess a good broker, or bank would have taken steps to address early on in the process. Unfortunately its all too common to have this sort of news 5 minutes to settlement. Most bankers and brokers dont deal with complex investment portfolios, and so it might be their first time with this kind of issue.
Unfortuantely there is no easy quick option to solve it now. I suggest hassling your contact at ANZ to speak directly with the credit manager handling the discharge, and also make your conveyancer aware of the issues so you can ask for more time to settle.
Good luck.
 
Would you believe I spoke to my bank manager about this very issue several months ago specifically requesting we get the partial discharge approval sorted in advance so I could sleep easy knowing this wouldn't happen.... and he said "Oh no it will be fine. It is pointless doing it now, wait until settlement and it can all be done at the same time."

I need a VERY large drink.
 
Bugger!! Next time you need to get that sort of thing in writing, and their response. It may not have helped with the discharge team, but it would have helped claiming back penalties from ANZ if you miss settlement.
Did you remind him of your earlier conversation? Is it time to run it up another tree, through the complaints department or something?
 
Complaints department is on my list of people to call this afternoon when I leave work and head for the nearest bar.

Thanks for all the advice, support, suggestions and sympathy.
 
Would you believe I spoke to my bank manager about this very issue several months ago specifically requesting we get the partial discharge approval sorted in advance so I could sleep easy knowing this wouldn't happen.... and he said "Oh no it will be fine. It is pointless doing it now, wait until settlement and it can all be done at the same time."
I need a VERY large drink.

You may want to find out exactly what type of "manager" he is.
Banks have ways of calling many people "managers", be it loan managers, relationship managers, business managers etc, but that don't mean they make decisions or have much discretion.
I'd suggest you need to find the person responsible for that branch and take it up with them.

And talk to an experienced broker as well. there's a few round here.
 
Would you believe I spoke to my bank manager about this very issue several months ago specifically requesting we get the partial discharge approval sorted in advance so I could sleep easy knowing this wouldn't happen.... and he said "Oh no it will be fine. It is pointless doing it now, wait until settlement and it can all be done at the same time."

I need a VERY large drink.

Hi GTF,

I see you were not as silly as some people thought and tried to prevent this disaster from happening, thinking you were in capable hands.

This is so terrible for you and makes me angry that there are such incompetent people out there calling themselves Bank Managers, if that's what he/she was.

tobe ;
Bugger!! Next time you need to get that sort of thing in writing, and their response. It may not have helped with the discharge team, but it would have helped claiming back penalties from ANZ if you miss settlement.
Did you remind him of your earlier conversation? Is it time to run it up another tree, through the complaints department or something?

What tobe said.

Have you reminded your Bank Manager of your earlier request?


Regards JO
 
We settle on a new property on Monday with a new lender and have submitted a Partial Discharge from ANZ

i know it is leaving things extremely late ... but have you talked to your new lender to see if they would take on this property at 80% - and discharge the whole lot from anz on this property?

i know it can be extremely frustrating. we once were doing a refinance thru cba and it took them six months (bank lost paperwork, proper docs not sent in the first place etc etc) before we told them to "put it somewhere else". i'm just glad that wasn't a purchase.
 
Thanks for all the suggestions.

I submitted a complaint but really... the only benefit was me blowing off a bit of steam. Nothing changed, not that I expected it would.

We have sourced the extra funds and settlement is all set for 2pm Monday. I am far less confident of it all going ahead smoothly now with this hiccup coming out of left field.

I am so deeply disappointed in ANZ after all this time with them. I know I shouldn't take it personally, but I do. Lesson learnt.
 
Bugger

I know u cant do much about it now, but for future warnings for others

Never assume ur lender will do anything, especially where u have been with them for a long time

You are only ever as good as your last repayment, or in this case your last valuation and their current assessment.

ta
rolf
 
Warning duly noted! I will never again put all our eggs in one basket that is for sure.

The drama continues... settlement has been cancelled for Monday as the people who we are buying from, their Discharge from their bank has expired! How long does it usually take that sort of thing to get sorted?

We have people mean to be moving in here on Monday... they are rather irate.

And we have had to cancel the removalist. What a pain for him too.
 
I've never really heard of a discharge request expiring.

Sounds like an excuse for "oop's we aren't ready yet "

Sorry it went pear shaped for you, hope things improve.
 
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