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  • Profile photo of striker1striker1
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    @striker1
    Join Date: 2003
    Post Count: 1
    May 16, 2003 - 12:09 pm

    Hi

    I was wondering if anyone in Australia is purhasing property sunbject to existing finance ?

    Does anyone know if it is legal to do that in Australia ?

    I would be interested to hear peoples views on the ethics of doing it !

    Some people might say buying subject to existing fin means sucking out the equity someone has already got in a property ?

    Let me know your thoughts on whether this is viable in Australia !!

    Regards
    Brett

    Profile photo of ADAD
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    @ad
    Join Date: 2002
    Post Count: 636
    May 16, 2003 - 10:46 pm

    Hey Stricker,
    Could you explain more about what you mean by that clause. What is the aim ?

    Enjoy
    AD [:0)]
    (Andrew)

    “”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
    Albert Einstein

    Profile photo of OPMOPM
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    @opm
    Join Date: 2003
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    May 17, 2003 - 9:42 am

    In Oz, a common clause is “subject to finance” meaning that the purchaser can pull out of the deal if s/he cannot obtain satifactory finance.
    It’s usually put in as an exit clause as well.

    But i don’t think you’re referring to this particular clause?

    What country are you from and can you do it there?

    Profile photo of williwilli
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    @willi
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    May 17, 2003 - 11:10 am

    Are you referring to buying a property by ‘assuming’ the current loan?

    Pete

    Profile photo of striker1striker1
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    @striker1
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    May 18, 2003 - 6:07 am

    Hi

    Pete ! Yes that is what I meant.

    Assuming the current loan.

    Regards
    Brett

    Brett

    Profile photo of williwilli
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    @willi
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    May 18, 2003 - 6:54 am

    Ok as far as I am aware, although this is an extremely common practice in the USA its a lot harder to complete here.

    My understanding is that Aussie Banks don’t have what they call fully assumable loans here, that is there a clause in the loan contract which states that the loan cannot be assumed by another person. so basically the only thing you can do is refinance the loan – possibly under a new persons name.

    However, I heard a rumour a while ago that Westpac or National had a fully assumable loan in the pipe works. I think I heard this at a Vendor Finance Assoc. meeting or I may have dreamt it..

    Either way its a great way to purchase property extremely easily and/or cheaply, particularly if the vendor is close to defaulting on their current loan..

    Pete

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