I am going through an appalling situation with my current lender. We have a loan set up in 2010 which is for three investment properties. They are cross-collateralised (not the best, I know... but that's another story). 2 months ago I contacted my lender to advise we had a buyer for one of our properties. I advised
I was not happy with the outcome of this conversation and decided to make contact with one of their brokers to help me navigate through the system. I filled him in on everything.
Some weeks later, whilst the valuations were being done I communicated with the Partial Discharge Department that again we would need LVR raised. I specifically asked what did we need to do to get the ball rolling, forms to fill in etc. I have an email from him saying "you might not need to worry about this. let's get the vals in first".
To cut a very long story short........as I predicted, an LVR variation is required or I have to come up with 21K which I don't have. In the latter stages of the process I was advised by lender's Variations Department that an LVR variation is actually an entirely new loan set-up, requiring serviceability checks and an application. Despite the fact that my husband and i are now back living in same house we do not meet serviceability. I find this unbelievable as
The process has been fraught with unprofessional behaviour including
We are now a month off of settlement on the sale of the property and i am waiting for the lenders assessors to look at it on a case-by-case basis. I started dialogue with them back in August ! And, then because I didn't trust what they were telling me (they were very vague) I went to one of their brokers to help me navigate through the process and was told that an LVR variation is exactly that (a variation to LVR NOT an entire new loan application whereby we have to prove we can service the loan again). The misinformation has been ongoing.
I have been told that before the assessors can look at the paperwork I need to provide originals of all supporting documents. I explained in an email that nowadays so much is done on computer that traditional "original" documents don't exist (ie payslips, e-tax returns, payment summaries). Even if I can get original tax returns from ATO, this will take up to 28 days ! So, could they please tell me what they consider to be "originals". Guess what..... I didn't get an answer. I have sent all my supporting paperwork off and I fully expect to be told on Monday that some of them are not considered originals.
The whole situation has become farcical. We are being treated as if we have done something wrong. All I have ever done is send copius emails and made telephone calls to disclose all the facts (as a responsible mortgagor should do). I don't understand why they did not tell me that serviceability requirements have changed since 2010 and recognise that what i was telling them needed to be dealt with sooner rather than later. I am so distressed and at a loss as to what to do next other than wait and hope.
- Selling property at break-even point
- Living circumstances changed with my husband and I living apart
- We would need to look at raising LVR and asked what would be involved in altering LVR
I was not happy with the outcome of this conversation and decided to make contact with one of their brokers to help me navigate through the system. I filled him in on everything.
Some weeks later, whilst the valuations were being done I communicated with the Partial Discharge Department that again we would need LVR raised. I specifically asked what did we need to do to get the ball rolling, forms to fill in etc. I have an email from him saying "you might not need to worry about this. let's get the vals in first".
To cut a very long story short........as I predicted, an LVR variation is required or I have to come up with 21K which I don't have. In the latter stages of the process I was advised by lender's Variations Department that an LVR variation is actually an entirely new loan set-up, requiring serviceability checks and an application. Despite the fact that my husband and i are now back living in same house we do not meet serviceability. I find this unbelievable as
- We already are paying the loan without default
- We are actually selling a property and reducing our debt
- We earn more than we did in 2010 when loan was taken out
The process has been fraught with unprofessional behaviour including
- Lenders broker advising me that we did meet serviceability
- Broker telling me had liaised with the lender
- Lender telling me they had not received anything from the broker
- Lender finally getting information from the broker and telling me they did not understand it
- Lender telling me the loan was not serviceable
- Lender sending me an application form understating my husband's income by 20K
- Lender filling in the application as P/I rather than interest only
- Lender not answering my direct questions about the process
- Lender not letting me know early in the process what an LVR variation really meant in terms of paperwork and offering me an early serviceability check
We are now a month off of settlement on the sale of the property and i am waiting for the lenders assessors to look at it on a case-by-case basis. I started dialogue with them back in August ! And, then because I didn't trust what they were telling me (they were very vague) I went to one of their brokers to help me navigate through the process and was told that an LVR variation is exactly that (a variation to LVR NOT an entire new loan application whereby we have to prove we can service the loan again). The misinformation has been ongoing.
I have been told that before the assessors can look at the paperwork I need to provide originals of all supporting documents. I explained in an email that nowadays so much is done on computer that traditional "original" documents don't exist (ie payslips, e-tax returns, payment summaries). Even if I can get original tax returns from ATO, this will take up to 28 days ! So, could they please tell me what they consider to be "originals". Guess what..... I didn't get an answer. I have sent all my supporting paperwork off and I fully expect to be told on Monday that some of them are not considered originals.
The whole situation has become farcical. We are being treated as if we have done something wrong. All I have ever done is send copius emails and made telephone calls to disclose all the facts (as a responsible mortgagor should do). I don't understand why they did not tell me that serviceability requirements have changed since 2010 and recognise that what i was telling them needed to be dealt with sooner rather than later. I am so distressed and at a loss as to what to do next other than wait and hope.