Hey commercial loans are a different kettle of fish to home laonsand I did point out that UCCC loans were not invetsment loans.
I do note that nobody has been able to show a single piece of evidence that a bank can call a normal home loan just beacause the LVR moves teh wrong way.
Bring it on clowns
Wow – another thread sinks into name calling and acrimony. What a surprise this is.
Is there something that has fundamentally gone wrong for this to keep happening. I don’t see this happening on Somersoft.
Maybe because nobody questions the stuff on there. ie they believe every thing that is posted is true just because it is on the net.
Originally posted by Nat R:ie they believe every thing that is posted is true just because it is on the net.
I don’t believe that this is true, Nat R.
How are you all going??? Is anyone able to offer any form of proof that a bank can call a loan??? Or are you just going to go around in circles and criticise me for having the hide to question a statement??
I too will be interested to hear the answer on this one regarding regulated home loans.What they can do and what they would do is also two different things – similar to what the Japanese banks found – they couldn’t call in their loans as they would lose too much – better to let them tick along.
I have heard commercial loans are a piece of cake to call in – I recall my broker telling me that the NAB once decided they didn’t want to operate in a partuclar medium sized WA town and they just called in their whole loan portfolio. Some businesses managed to refinace, some went to the wall.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Hi all,
I agree with ANUBIS this forum seems to be getting more and more aggressive. I don’t know why. It’s a pity because Steve has done a great job with the products, site, newsletter etc that he has produced and it would be a pity to see things go to the dogs.I know your going to rip my throat out for this Nat. But if you think its a stupid post then don’t answer it! Why would you spend the time to write a reply if you are just going to get all aggressive.
Your comment,
“Some of the absolute BS on this forum is just too funny for words.”You must have asked the question (to yourself or of some one) your self at some stage in the past, or were you born with this information?
MarkyMark
Many commercial loans include covenents where the lender can check the financil postion of the borrower every six months and if EBIT or EBITDA fall below a certain level then the loan can be called.
Keep in mind many commercial loans only have a life of 3 or 5 years anyway.
BTW I have doubled check with our in house lawyer and you cnanot call a home loan that is not in default.
Has anybody else been able to get an opinion from a lawyer stating otherwise???
anyone anyone!!
don’t be shy!!!
Thats correct Nat as long as you are meeting your commitments the bank don’t care – who would, but its a depressing position to be in – to wait for the next cycle !!!
We’ve established that commercial loans can be called in, so that’s not an issue.
The question here is can a home loan be called in due to negative equity even though it is performing.
My question is at what time is a homeloan on an IP deemed a commercial loan? How many IP’s can you have before the banks say this is not a consumer loan it is a business loan? This would of course make a difference to this discussion.
Another problem with negative equity is when investors are heavily leveraged and interest rates rise, positively geared properties can become negatively geared. Defaulting on one property can have a domino effect and cause a number of properties to fall over.
Jeff
I don’t think any bank would call in a performing loan. Why wuld they?? Already they repackage the said mortgages and sell them to investors and other financial institutions. Now why would they call in these loans?
Because if they did they would have to pay out funds to compensate these investors (technically they might not have to, but why would people invest in a particular bank’s mortgaged securities if the bank called loans in, investors would think the bank was nuts, since no other bank would be doing it).
I guess with commercial properties it’s different because the risks are different (everyone needs a home, even during a recession, but business can close up or move somewhere cheaper).
Rgds.
Lucifer_auAnubis and MarkyMark… Hopefully the forum can stay positive if most of us can make it so. It’s annpying when people reduce such a forum to saying stuff like “bring it on clowns”… thanks for that Nat. Seems like you think some of us are clowns? A pity you see people with such contempt. As I said previously, if you have info to educate others, then great. If you wish to just treat people as beneath you, I for one, don’t want to hear it.
A little self-control doesn’t hurt.
kay henry
hi guys,
wow that was an interesting read. i think Nat perhaps sees some people as clowns where maybe they / we just don’t quite know as much as her about the finer details. she should perhaps take less informed people under her wing and help them rather than ridicule them. it’s always easy to pick on easy targets but perhaps more challenging not to??? Life can be so much more rewarding when you actually contribute something positive.
Nat, i think you and i should hook up so i can put you over my knee and give you the spanking you’re looking for [evil4]….lighten up
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