Screwed by bank again even with 10% deposit

[bdc]

Why? You're buying the insurance to protect the lender, anyway - so the money's for their benefit, wherever it ultimately goes. I think it's fine for them to choose whether they want to purchase the insurance or self-insure; it's no skin off the borrower's nose.

Except for the fact that you are paying for it, and they said you HAD to buy it, it costs this much and it has to come from our nominated LMI company, then pocket the money.

That's fraud.

Edit: I doubt that they do as above anyway, as BV said i'm sure they cover themselves, i'm sure that the Insurance company simply throws them a nice party with some of their profits, this happens in many businesses.

 

[Propertunity]

Except for the fact that you are paying for it, and they said you HAD to buy it, it costs this much

They do say that

and it has to come from our nominated LMI company,

They don't say that

then pocket the money.

Which is why they can and do, do this.

I also had this experience many years ago with a loan with one of the big 4.

That's fraud.

Not if they do not nominate the MI company by name and just refer to it as a risk fee or similar.

Remember MI covers the lender only. If the lender makes a claim, the MI is after your butt as the borrower anyway. I have no problem with the lender charging me a fee for MI and then not taking out the policy - that is their problem if they think I'm a good risk.

 

[letiha]

Sorted

Well i sorted everything out and have a happy ending. After appealing the valuation on both properties we had a win on both, the valuations from the second valuer coming up higher.

The bank is now ablr to proceed with no LMI so no hickups anymore i hope.

 

[Perp]

Great news, letiha.

 

[sparky23]

Hooray another win for the little people - well done!

 

[letiha]

The best thing is that we also own 2 other properties on the same street which are internally identical, these are financed through the NAB, this valuation is about $35k more than their valuation and this block has always been valued $5k less from day 1.

Not that we'll be needing further finance soon, 3 plus IP's and 2 new builds on the way is more than enough. But knowing me i'll get bored and start looking for a new project.

 

[letiha]

UPDATE:

All was well had a valuation done on another property, agreed to cross collate. so under LVR 80%.

Got the "Official" unconditional approval letter from the bank, they gave my builder the authorization to commence...and THEN

Yesterday a call from my manager, the valuations manager no longer wanted to accept their own valuation. Instead of getting upset, i got made.

Lodged a complaint with the ombudsman, lodged official complaint with Westpac, sent a lovely email to the manager putting my foot down.

Finally got them to agree to honour their approval, but i am going to continue with the complaiant to the ombudsman for reimbursement of the increase in my building contract because of their reidiculous "its approved...opps no its not" thats been going on for 2 months, plus the cost of the interest on the land.

 

[Perp]

Yesterday a call from my manager, the valuations manager no longer wanted to accept their own valuation.

*Groan* This sounds as ridiculous as my bank withholding settlement proceeds until their own cheque had cleared. Did they doubt that it would???

Truly, the finance industry needs somebody really innovative to come in and build a bank with a customer focus, and transparent, consistent procedures at its core. If you could become known as a lender who can process and approve applications quickly, settle quickly, and stand by your commitments (such as written approvals), you'd do very well.

LOL... I've just realised that even the lenders who do none of these things make substantial profits. Hopefully a lender who did these things would win the support of the property investing community and make even larger profits.

 

[Rolf Latham]

Hahahah

Transparent

Vacant maybe..................transparent never

ta

rolf

 

[josko]

UPDATE:

All was well had a valuation done on another property, agreed to cross collate. so under LVR 80%.

Got the "Official" unconditional approval letter from the bank, they gave my builder the authorization to commence...and THEN

Yesterday a call from my manager, the valuations manager no longer wanted to accept their own valuation. Instead of getting upset, i got made.

Lodged a complaint with the ombudsman, lodged official complaint with Westpac, sent a lovely email to the manager putting my foot down.

Finally got them to agree to honour their approval, but i am going to continue with the complaiant to the ombudsman for reimbursement of the increase in my building contract because of their reidiculous "its approved...opps no its not" thats been going on for 2 months, plus the cost of the interest on the land.

What a saga,

I have learned very recently not to let the "big guys" push me around. I had no idea just how much a threat to take matters to higher authorities would actually matter. If you are right- you are right.

I'm glad you pushed and now have your approval. Good for you.

Regards JO

 

[Piston Broke]

Yesterday a call from my manager, the valuations manager no longer wanted to accept their own valuation. Instead of getting upset, i got made.

Maybe this was the problem all along.
I'm seeing banks starting to get really tight and uptight about valuations.

 

[Perp]

Hahahah

Transparent

Vacant maybe..................transparent never

Well, Rolf, I am the eternal optimist...

 

[sash]

Josko,

You are absolutely correct....the big banks will try you on....if you push back ...they tend to go back into their holes.

I now push these guys around as a "sport"...incredibly...I now win 85% of the time. Now that is odds I am prepared to live with.

What a saga,

I have learned very recently not to let the "big guys" push me around. I had no idea just how much a threat to take matters to higher authorities would actually matter. If you are right- you are right.

I'm glad you pushed and now have your approval. Good for you.

Regards JO

 

[letiha]

Maybe this was the problem all along.
I'm seeing banks starting to get really tight and uptight about valuations.

No the valuation really shouldn't have been the problem, if i listed it for sale tomorrow at the valuation price i'd have the agent offering to buy it, I'd even want to buy it for the price of the valuation as its at the current cost of the land and to rebuild the house (whichis 15 months old)

I got another call today, they needed more paper work signed *sigh*

Looks like the NAB will be getting more of my business instead of Westpac, at least they never screw me around ( well except for when we sell making us pay down the other loans).