I am about to wrap a property i bought four months ago, and have fully disclosed my intentions to the lender as a caveat will probably be placed on title by wrappee.
Broker has put my case to them (“more income, I am still responsible for loan”) and I’m a waiting for their consent….hoping for a break.
I don’t want to have to refinance.[curtain]
I will let you know how the honest approach goes.
Does anyone know of cases where the bank has acted on a wrap they weren’t informed of. What happened?
lifexperience
Good luck with your wrap lifeX.
Yes my friend wrapped houses without his lenders knowledge, but being a bank for profit, decided that there was no hiccup with the repayments and let it be. You know- If it aint broke, dont fix it mentality.
However, if this was to occur again with another bank that didn’t appreciate his disclosure, there could be many problems. The bank could revoke the loan etc. I dont think there is anyway a wrapper can refinance his loan on a property if he has onsold it to another in a wrap transaction.
With the amount of finance out there today, I think it would be unwise not to disclose your intentions, somehow things come back and bite.
By the way good on you for wrapping; it saves you buying tin sheds in the desert and renting them to nomads just to achieve +cf through a buy & hold strategy in todays climate.
LifeX, good luck and let us know how you go. I hope your LVR is less than 80% as it will be much easier.
As for loans being called in, there is a rumour going around that one of the major banks recently called in the loans for a certain big wrapper. He had to refinance about 40 loans in a hurry.
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
Terry,
If I think you are talking about a big wrapper I think you are, it wasn’t because the bank didn’t like wraps… it was because the bank was not “happy” with how he operates….. ( and that was direct from the bank…. )
It’s all about presentation, and, LIFEX, you are going about it the right way…..
GOOD LUCK !!!!
Good luck!
Keep smiling
Felicity
So LifeX you chose the blue pill, Well Alice Kansas is about to go bye-byes!!!
There are so many people who have helped me, yup even Scott, You’re not alone….go for it!
My mortgage broker said the bank was ok about the vendor financing….yee-ha!!!
He argued that it would simply increase the total income on the property and that I was still just as liable for mortgage.
It was a good win, as this property was on a joint loan with another property and cross collateralised with 2 others.
So I would recomend that anyone considering wraps, fully disclose your intentions.
Thankyou everyone [drummer]
Supafreak, Kansas is long gone.
lifexperience
Thanks so much for a win for the tell it like it is…
I am a newbie to the site and have to admit that some of the comments I have read from a few people suggesting things i wouldnt try or condone in a fit had me a little worried.
I am very glad it has gone ahead.
M
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