Seeking loan on income protection insurance

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From: Justin Jefferson


I'm trying to get a loan to buy an IP. The problem is that I have been unwell over the past year, have sold my small business, and am living on private income protection insurance. I expect to be back at work in 3 to 6 months, but then I will either have to get a job, or start up another business.

I have made inquiries about getting a loan. Preliminary results are that the lenders are baulking because I am on income insurance. Their reservation is that, when I go off the insurance, my income will then be uncertain while I make the transition to a steady income.

My questions are:

1) is not this the most ridiculous thing? You have a job when you get a loan, but you're not bound to that job. You could quit the day after you've got the loan. You would think that, the capital of the loan being supported by the mortgage, and the repayments being secured so far as they can be by a steady income for the time being, that would satisfy them.

2) does anyone know of any way to get a loan for an IP despite the fact that I am currently on income insurance. I should say here, that it's not as though I'm a bad risk as far as income goes. The least I could do would be to earn an average wage, and I have no dependents.
Any information appreciated.
 
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Reply: 1
From: Michael G


Justin,

Tell you what, since you're such a good friend, I'll buy the IP you want for ya. We can draw up a lease/option agreement with the lease for the duration of your income protection.

Well set the lease for a % above the current interest rate, plus charge a premium for the option which we'll factor into the lease payments.

You have the time during the lease to secure an income and get pre-approval for a loan for a sum equal to your strike price on the option.

If you fail to meet the terms of the option, which is have an job/business and have a loan approved, the option expires, and you forfiet your premium and all lease payments.

Otherwise, you exercise your option and buy the property off me :)

What more could you ask for?

Michael G.
 
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Reply: 1.1
From: Jakk Bass - The SLUM LORD


Your prayers have been answered by "Saint Michael of Sydney"

What more could anyone ask for??

regards
Jakk
 
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