5 loans, one lender. Sale proceeds

Discussion in 'Property Finance' started by Cream&Co., 27th Nov, 2018.

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  1. Cream&Co.

    Cream&Co. Member

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    4th Jul, 2015
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    sydney
    hi guys

    I currently have 5 loans with rams. All loans are self secured. I am preparing to sell a property that has 2 loans against it.

    266k main loan and 110k split loan totaling 376k

    My other loans are all IO and self secured. no cross collateral.

    My question is regarding sale proceeds. What guarantee do I have that the sale proceeds will come to me and not paid back into my other loans? I have heard stories.....

    Love to hear your experiences or advice. Thankyou
     
  2. Gill Bates

    Gill Bates Member

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    How would they take the money?

    At settlement ?

    or from you RAMS account as soon as excess funds are deposited there ( i assume )?

    Is not there dispersal instructions ? given by your solicitor? RAMS whould have to overide these somehow?
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Ask Rams for the payout figure for all loans pertaining to the property you're selling. They should not have any reason to keep additional funds if they're not cross secured.
     
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    You will need to complete a discharge form and the discharge form will have a section whereby you can select where the surplus of funds will be paid to. You can also get the payout figure before the settlement and that will confirm the funds you are receiving.

    This is all provided that the loans are not cross securitised which sounds like they are not.
     
  5. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    You have no guarantee. But unlikely they will put any conditions like that on the discharge of mortgage. Just get in early.
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    They are urban urban myth stories
    ...... Or the loans were crossed.

    Ta

    Rolf