Hi all,
We are in the process of buying our first investment property. The property is about to settle, but our solicitor informed us that we were $2000 short on settlement.
We phoned our bank and we were told that he had miscalculated the fees which affects the amount he told us to borrow (we’re borrowing for closing costs etc).
Now we have to come up with an extra 2K to cover which we don’t have. Does anyone know what happens if we don’t come up with the $2000. Who is liable? If the loan falls through do we have to pay anything to the vendor.
Hope this makes sense.
Thanks,
Karl and Rita
The only thing that limits us…is a limiting belief.
Could you get $2000 off a credit card, friends or family or a short term loan?
If finance fell through you might have a problem, but for the sake of only $2000 I wouldn’t think this would be too much of a problem, someone will answer you soon with a definate answer, dont stress too much, you wouldn’t be the first this has happened to because of an idiotic bank.
Hope this helps… G7
Hi Karl,
Do you have $2K in your credit card – given the urgency of the situation this may be the most convenient option.
Otherwise get in touch with your lender/broker immediately and see what they can do – personal loan, extend line of credit etc
Also get in touch with the vendor explain the situation to them – while they may not be in a position to help – at least have the courtesy to explain the hold up. They may be able to delay settlement so that the additional funds can be sourced.
I would also be dicussing the issue with the manager at the point of error (solicitor?) to ensure they pay any penalty costs.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
K&R,
You wrote:
“We phoned our bank and we were told that he had miscalculated the fees…”
Surely, your bank coud spot you a loan for another 2k to assist you, given that it was not your own error? 2K is a pretty small amount. Seems extraordinary that they wouldn;t just add this to the loan.
kay henry
This happened to me long ago too. I wnet to the Colonial Bnak (before I became a broker) and the guy there miscalculated the mortgage insurance by about $3000. I complained to him and the bank manager, but they just shrugged it off, despite the fact that I had it in writing. So in the end, I just wore it.
But you may be able to get compensation, just look at the bank’s website, and call the customer complaints section. However, you are not being charged extra, it is just something you were not properly informed about, so don’t expect to get much back.
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
Yeah well guess what happened to me today.
Settling on an IP tomorrow and talking with lawyers, they said our bank have sent them all the cheques bar 1. Do you think the bank will get the extra cheque on time.
No, we have to arrange the extra finance ourselves. Lucky it is not a huge amount.
Bl#%dy banks
“Life is not a journey to the grave with the intention of arriving safely in a handsome and well preserved body, but better to skid in sideways, thoroughly used, totally worn out and loudly proclaiming . …… Hell, what a trip !!”
Karl And Rita,
Im just reading your post and peoples responses, am i to understand that you dont have a spare $2000 lying around?
Are you getting yourself in tooo deep with this first purchase?
What if the loan was correct, but god forbid one of u had an accident or the car dies and u need one asap for your job??? i dont think that u sould be asking where to get 2 grand when your buying an IP, the worst crap in life always happens when you dont need it, $2000 won’t buy much if the HWS packs it in and the roof starts to leak…
Sorry if i sound rude or uncompassionate, if its the banks problem or not, u need to have at least $5000 available straight away “just in case”
In other words, dont rely on getting this IP using last weeks pay…Jason…
(dives for cover)…….Teacher K
I agree – I thought the same when I first read it.
No need to duck.
Jason,
I think it’s a point that we could probably all think about. How much cash do we have sitting around if something goes wrong, be it with a loan shortfall, if the rent doesn’t come in to cover the mortgage, or if repairs need undertaking? [cigar][guilty] Financial exigency is a real issue.
kay henry
Now we have to come up with an extra 2K to cover which we don’t have. Does anyone know what happens if we don’t come up with the $2000. Who is liable? If the loan falls through do we have to pay anything to the vendor.Check your purchase contract for penalty clauses, sometimes they can be quite high and are charged on the outstanding amount until paid. I too would get the fund any way possible such as a CC.
As for liabilty, sorry but you are responsible for understanding what you are getting into and that includes double checking the “experts” because at the end of the day or in this case settlement you are responsible for the funds. As Terry said you might get a mere recourse from the bank, but don’t hold your breath.
Another thought is do you have any equity that could be accessed as a Line Of Credit, this might do it.
Good luck.
Cheers
Leigh K[biggrin]Gee guys,didnt seem to be any suggestions about “creative” funding! Surely there are some ideas that could be passed on for everyone’s benefit?
Perhaps there are some ideas in the “creative” forum to help you raise some funds?
I am also a believer in biting off more than you can chew.(“& chew like mad” is a forumites motto that i love!),so dont be put off by people using scare tactics of “What if..” I say: Bloody go for it! You will find a way to fund it,if you really need to.
There have been 2 occasions i desperatly needed some funds,& as a person who DETESTS asking for “favours” from friends & family,started thinking creativly.
First up,i piled anything of significant value i had into my car & headed off to cash converters.They gave/give? a 2 or 3 mnth interest free loan.Sure,a piddly amount to the value of your goods,but you KNOW you will get your stuff back,or DONT DO IT!!
Another fund raiser was a personal loan.If you are not a credit risk,approval & funding are very quick.
Then there’s always grovelling for more o.t. at wk for “emergency reasons” (some bosses are compassionate)
Or offer a win-win deal to someone (not nec. related). Eg: 10% p/annum return on what ever they loan you.Which is nothing if it’s short term & gets you outta the poo!
There’s my 2cents worth.Good luck.
[biggrin]
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