Removal of Guarantee Security

[Jake D]

For a bit of background, check this thread out. Most info here remains the same, we are about 9 months into the 18 months house-sit.

http://somersoft.com/forums/showthread.php?t=76870

My current loan value is about $305k, we have set up a MISA and this value includes funds held in there.

We are now, due to a handful of non-interesting reasons, looking to remove the guarantee security from my in-laws property. I have spoken to CBA and understand that they will order a valuation and we will pay (capitalise) LMI according to our current LVR.

Purchase price in Dec 2009 was $340k, a residex valuation from Apr 2012 puts it at $320k-$355k (Thanks to a well known broker on this forum for providing that).
So if CBA gets a valuation of:
-$320k, we sneak in at 95% LVR (I'm sure I could find a grand to push the numbers), pay huge LMI and achieve our desired outcome.

-$355k, we get about 86% LVR, pay less LMI and achieve the outcome cheaper.

Both acceptable scenarios.

However, I am worried that Val could come in lower, and I see a worst case scenario something like this: CBA decides they need more security from the in-laws property than they currently have, they claim $60k or so (in security) and we have made our situation worse.

1. Is this a likely situation?
2. If so, How likely?
3. Is there a worse case I could be facing?
4. If you know Clarkson, what do you think my chances of a favourable valuation 30 months after a 2009 purchase are?
5. Anybody want to do me a fresh residex valuation to set my mind at ease?

 

[Peter_Tersteeg]

Dispite being a fan of Residex, you shouldn't put too much stock in their individual property reports. They're a great source of information, but they're only a supliment to your own due dilligence and research.

If you want to put your mind at ease, get a valuation done on your property by a valuer authorised by your bank (the CBA in this case). Here's how you can get it done with the CBA:

STEP ONE:
Use the below link to log onto the Valex website
https://vx.valex.com.au/client/ordering/consumerordering.php

STEP TWO:
Follow the basic information required on each page and press NEXT...

STEP THREE:
Once you get to the Summary page you'll be asked if you have a promotional code, click yes and enter 'quality'. This will change the cost for something like $350 to $99. (note that this code does change every few months).

A valuer will visit your property and a few days later you'll have a valuation that the CBA will accept!


For others who's loans are with different lenders; many lenders also allow brokers to order valuations and most don't charge at all.

 

[Jake D]

Thanks Very Much.

I had thought about ordering a Valex report myself, and knew that it would assure me a lot. I was just put off by the $300 cost and thought I'd run my thoughts past the forum first. Glad I did.

Any other thoughts from anyone else?

 

[Jake D]

The Summary page doesn't ask me for a promotional code.

 

[Peter_Tersteeg]

Sent you a private message with a new link.

You may also need to state that you're a broker in step 1.

 

[Jake D]

Thanks again.

 

[Jake D]

Thanks again for your help Pete.

I'm not sure because of my phones dodgy reception, but could you clarify what you said about the valuer taking my estimate of value into account?