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From: John Student
Hi,
I would like to get advice from anyone if possible..
I recently bought a second investment property and for this reason, I had to refinance my current residential with another bank.
With the original lender, I originally have 2 mortgage with them, my residential and my first investment property which I bought in 1997 and borrowed 80% from the purchase value. One month before the settlement, I wrote a letter to them to discharge the residential property and got a reply from the lender that everything was fine and ready to settle.
However, the day before the settlement, my original mortgage lender told my solicitor that they had overlooked my case and said they can't settle tomorrow because they now realised that they needed to do partial discharge against my other mortgage (first investment property). The result was that the settlement was postponed for 2 weeks and I had to pay the penalty to the vendor, vendor solicitor and my solicitor around $2000.
The original lender told me over the phone before the settlement that since it was their fault therefore I could lodge a claim to them and they would pay the penalty once the settlement was over.
But after I lodged the penalty claim via my solicitor to my original lender, their reply letter said that it was my fault because I didn't wrote a letter to request the partial discharge to be carried upon the other mortgage, therefore they are not liable for the penalty.
What should I do now?
I appreciate for your advice.
Hi,
I would like to get advice from anyone if possible..
I recently bought a second investment property and for this reason, I had to refinance my current residential with another bank.
With the original lender, I originally have 2 mortgage with them, my residential and my first investment property which I bought in 1997 and borrowed 80% from the purchase value. One month before the settlement, I wrote a letter to them to discharge the residential property and got a reply from the lender that everything was fine and ready to settle.
However, the day before the settlement, my original mortgage lender told my solicitor that they had overlooked my case and said they can't settle tomorrow because they now realised that they needed to do partial discharge against my other mortgage (first investment property). The result was that the settlement was postponed for 2 weeks and I had to pay the penalty to the vendor, vendor solicitor and my solicitor around $2000.
The original lender told me over the phone before the settlement that since it was their fault therefore I could lodge a claim to them and they would pay the penalty once the settlement was over.
But after I lodged the penalty claim via my solicitor to my original lender, their reply letter said that it was my fault because I didn't wrote a letter to request the partial discharge to be carried upon the other mortgage, therefore they are not liable for the penalty.
What should I do now?
I appreciate for your advice.
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