Thank you one and all for your feedback so far. There are some great suggestions there - and some that we wouldn't pursue.
I sat down and read the thread contents out to the wife last night, and will probably do the same tonight, such that we can gather our thoughts.
To clear the picture somewhat, I should explain a few things ;
1. This Bank is the one we have been with since the start. After asking them for support, and providing all of the numbers to them, they refused to support us with purchasing our most recent acquisition - the shed. Two reasons were given, firstly they believed they were exposed to us enough, and secondly they believed we could not afford the repayments, especially if the tenant went belly up.
2. They were however, after much gnashing of teeth, prepared to release two titles this time last year. This enabled us to do the shed deal with another Lender.
3. The Bank literally chucked a wobbly when we did the deal, although they weren't really sure we even did it as they weren't privy to it. They are still of the opinion we cannot afford the shed deal, and it compromises our cashflow and hence theirs.
4. They asked me to show them all of the financials on the deal with the other Lender. I knew this was not right and refused them. They said we cannot do anything with you at all moving forward, as we need to see the full picture of what you are doing. I kept repeating that they have no right to ask or demand that of me, but they said that's the bottom line.
5. I asked for what assurances they could give me (in terms of releasing a title) if indeed I did show them everything. They muffled and shuffled around, and would not commit to anything....it had to go back to the review panel, and any 1 of those 9 may object and therefore kill the prospect. He couldn't guarantee anything, and wouldn't allow me to speak with them....none of them ever do. You cannot get to the decision makers.
6. I asked him to specify exactly what hurdles the Bank used or were going to set for me, before they were satisfied on things such as LVR and DSR. He said it wasn't like that, and much more complicated than that. I asked him to oblige me with the complicated decision making model, and who knows, perhaps I may even understand a small portion of it. This was point blank refused.
7. We left the conversation with me obliged to furnish him with as much data as possible on the portfolio that they are involved with, with a heavy expectation to furnish him with the data from the other Lender. He left with no obligation back to me whatsoever.
8. Next thing we know, after 4 months of silence, is a one page letter saying literally thanks for the data, no you can't have a title back, don't ask again, and we are concerned about your cashflows because we simply don't know what you are doing with your other Lender....and until we do, zippo.
Everything we have with this Bank is xrossed with each other. Selling a prop. and paying the debt of that one and perhaps some others doesn't help us one bit. The bank is not obligated to release any titles to us, even if that individual one is paid off. We know this.
We also acknowledge fully that we signed the documentation, after much toing and froing with the Bank's solicitors. We read and understood every page. We knew what we were getting in for. The Bank has every right to stomp on us like this.
The wife and I have considered selling the one prop in the CBD when it has it's market review. It's value should jump considerably, to be nearly equal to the full debt held with this Bank. That is certainly an option open to us, but after doing the comparison figures, it's a very ugly alternative indeed.
To sell the one prop and discharge all debts with the Bank would involve our controlled assets being massively reduced, a multi-mega CGT bill, and the big kicker is surprisingly our after-tax cashflow would reduce by over 100K p.a. Talk about take a 5 year step back on the investing trail.
The Bank has agreed to leave us alone until end of May 09, when they shall be entitled to review our position again. At this time, some of our very low fixed rate loans shall mature, and be subjected to the - much higher - prevailing rates.
The best thing for us I suppose is that we are not forced to make a decision in a hurry....other than getting me out of this job.
Other things that need mentioning to round out the discussion ;
1. We don't wish to buy anything else. We have enough. There - I've answered it.
2. I'm not interested in bringing other people on board such that I would be answerable to them.
3. We don't wish to sell anything.
Our only goal in this debacle is to extract one title deed. The key to ditching the job and living the life we wish to centre's around this one deed. Perhaps this 2nd mortgage thing is the way to go. I don't know anything about those. Can the 1st Lender refuse ??
Oh - and keith - our props are still going up in value. Dunno about these LPT's, but ours are all OK. The Bank agrees with us on this point fortunately.
Lots of suggestions above - I can't think of anything which hasn't already been raised.
