Cross Coll - check your mortgage docs

Just having a barney with a second tier lender that uses Panel Solicitors

This was raised by a savvy borrower

Im no legal person, but the red bits sound smell and look like cross coll

Oddly enough, other multiple property transactions for this lender using the same panel solis have had sole secured mortgages.

this is for a loan of $ 290 000.


Terms and Conditions of this Mortgage

(a) Document Reference xxxxx

(b) Additional terms and conditions


1. We have agreed to lend money to you and you have agreed to borrow money from us.

You acknowledge giving this mortgage and incurring obligations and giving rights under it for valuable consideration of $ 980,000.00 received from us which you agree to repay together with the balance of the Amount Owing in accordance with the terms and conditions contained within Document

ta

rolf



This is how I was trained to prepare mortgage documents and have done so continuously throughout all matters concerning multiple properties.


Please note, this does not reflect a “reluctance to re run the paperwork”.


I confirm that the mortgages have not been cross collateralised – if they had been, I would have included a cross collateralisation clause in the mortgage and attached a separate acknowledgement of this to the bundle itself.


Further, I confirm that we do put the global limit rather than the security specific amount in the mortgage. This is because each security should secure the entire obligation. In order to ensure I have provided you with the correct advice, I have run this matter by 3 other solicitors who confirm what I have been saying

 

Had a win

Head of Legal at the lender called and will have the docs reissued.

Just a case of "redo the docs reluctance" as expected on push back

ta
rolf