Cross collaterilisation confusion

Discussion in 'Loans & Mortgage Brokers' started by tasksta, 11th Aug, 2016.

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  1. tobe

    tobe Well-Known Member

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    It's the back page of ANZ loan offer doc
     
    tobe, 11th Aug, 2016
    #21
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Dont forget the effect of an all moneys clause will mean any security with the bank will secure all of your debts to that bank.
     
    Terry_w, 11th Aug, 2016
    #22
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    good to point that out, having said that as u have said before xcoll is another level of risk that is usually not sensible to take

    ta

    rolf
     
    Rolf Latham, 11th Aug, 2016
    #23
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    All moneys clause is a lower level risk as you can still freely move properties out without the mortgagees consent - other than paying out the loan.
     
    Terry_w, 11th Aug, 2016
    #24
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  5. Corey Batt

    Corey Batt Well-Known Member

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    True - cross collateralisation issues also extends beyond the risk of default/repossession. LMI is more expensive, adverse valuations on a single property an drag other strong valuations down so nil equity can be released etc.

    You don't realise how often people are cross collateralised until you see how many settlements are delayed by sellers only finding out the day before settlement that their PPOR is securing other property which then needs to be valued.
     
    Corey Batt, 11th Aug, 2016
    #25
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    nor do they

    Mosly but not always this is a banker thing where they have never sat on the side of the borrower.

    once the banker becomes an investor themselves, it changes.......

    ta

    rolf
     
    Rolf Latham, 11th Aug, 2016
    #26
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  7. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Bet you its the portfolio product.
     
    Colin Rice, 23rd Aug, 2016
    #27
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  8. Brady

    Brady Well-Known Member

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    Haha yeah maybe issue with a couple of the valuations not coming back at what she thinks. Who knows. But once they're tied in going to be fun getting out of that.
     
    Brady, 23rd Aug, 2016
    #28
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