Alright heres my situation, recently i went out and purchased 3 more investment properties, though cause my partner was away, i called the bank up and told them i want 3 loans at this price in my name and in my partners name,
well cause my partner was not there, i had to get the the loans in my name and with her as the guarantor. Problem is that they cross-collaterised about 20 of our properties to get the security we need,
Thing was we didnt mine that as we known we bought a bargain, but in my predickement now, i am unable to sell my other properties cause they are tied up as security,
ive spoken to the bank and they will write an official letter saying that they declined our finance, to free us up with some cash flow, to the agent on one of the potential properties we are suppose to settle.
though what also hinders me is that i have another 4 contracts that are needed to be signed, but i cant yet cause im worried of this cross-collarterisation. And that i cannot commit my self if the recent 3 IP purchased are x-collartised.
If there anyway i can lift the x-collartisation, so they dont use most of my properties.
Or how can i get out of x-collaterisation. i have been told a few things that i can do. But could anyone suggest anything?
Still in school, I am having trouble reconciling with this post and it’s truthfulness regarding the 20 properties when you have just posted in the General Investing Forum the following:
Count me into. 21 years old 11 IP, aim for 17 IP before the year ends, only been investing for about 8-9 months as well.I am happy to help, but at the moment I am unsure as to whether you are ‘having a lend’ or being a bit ‘boastful’ of that which is not true.
Cheers
MelBasic rule of thumb – as I’ve been told!!
One loan against one property. The banks will always want more.
Chris
Hi Still in school
I am with Mel your post is a bit confusing. Why did you have to get the loans in your name with her as guarantor she would still need to sign something why couldnt she sign the original loan doc’s.
Why cant you sell the other properties just because they are x coll, doesnt mean you cant sell them it might just mean the bank wants some of the money.
My best advise is to carefully read all future contracts with the bank so that you know what you are putting at stake.
Why dont you go and talk to the bank about how you can remove some of these properties from being x coll. They may just give you the answer.still_in_school,
Aside of the questionable credibility of your post, you also were hoping for an increase in interest rates so that you could buy up all the properties from those who got into trouble with repayments.
I am wondering how you might feel if you yourself got into trouble and buzzards started hanging around waiting to take your properties off your hands for a song.
still_in_school with this outrageous exaggerative post, it might be time for you to start up with a new nick? You just blew your credibiility. I don’t know why anyone would lie on an anonymous forum like this. Who cares if you have 20 IP’s or none? This is not a competition.
kay henry
You can just apply to the bank for a release of security. Depending on valuations, you may have to pay down a few loans to get the released. To get this money, you could increase the loans on the ones with larger equity. But this will take time, dealing with banks is like dealing with the public service. It is probably better to set your self up properly as soon as you can.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Anyone else remember that tv ad ?? Went something like: “One day you’re gunna get caught with your pants down…” [:0)]
“I want to be rich, and stupidly happy – so far i’ve only managed to achieve the stupid part…”
Fatboy,
I lucked out on the interest rate competition you ran in an earlier post. So no FatBoy Slim CD for me, and given that the CD was never on offer, I don’t even have the satsifaction of saying “I told you so” on the Forum! [|)] My prediction of Howard holding the RB back from making an interest rate rise until after the election was so wrong- could the RB be independent after all?
kay henry
Hi Mel & Erika,
When I first started reading this post I thought how can you just ring up the bank and say you want 3 loans at this price. I have enough problems just doing 1 at a time. I didn’t twig until I read your posts that someone was having a lend of us, just before I was about to reply.
Hi Kay Henry,
I was thinking about a post today trying to remember who it was that wrote there wouldn’t be a rate rise until after the election. Now I know who’s it was. At the time of reading I was hoping you were right. I guess we can’t win all the time.
Now a message for still_in_school, if your trying to have fun then so be it. BUT remember that it is not that difficult to trace where computer messages originate from. How do you think they locate where virus originate from. Now lets just hope you weren’t silly enough to be using a computer from home.
C2
“Is it true the more you owe the more you grow until the bank steps in?”sorry guys you got it mixed up, anyway ive worked a way to get out of this problem, but for myself i dont own 20 IP thats my partner for me i own only 11, but is there any way on here that i can post a copy of the mortgage protection, so that you can see and understand my problem? sorry for all the confusion.
>>Howard holding the RB back from making an interest rate rise until after the election was so wrong- could the RB be independent after all?
<<The RBA is an independent entity. Whether Howard can tell the RBA what to do depends whether or not you believe in ‘wink wink’ conspiracy theory.
As it is the government cannot tell the RBA what to do. There may well be discussions and no doubt the gov. has got a representative on the board who can possibly put the the govt’s point of view.
How the RBA then votes is up to the board.
Pisces133
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