Fail finance on purpose?

Discussion in 'The Buying & Selling Process' started by Kai41314, 31st Jul, 2015.

Join Australia's most dynamic and respected property investment community
  1. Kai41314

    Kai41314 Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    134
    Location:
    Melbourne
    Hi,

    My friend told me he didn't want to pay the penalty to pull out during cooling off period so asked the banker to fail the finance on purpose. Is it possible? Is it common?
     
    Kai41314, 31st Jul, 2015
    #1
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,658
    Location:
    Sydney
    Yes possible but very wrong
     
    Shahin_Afarin, 31st Jul, 2015
    #2
    Perp likes this.
  3. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,238
    Location:
    Homeless
    Has long term things to consider. It stays on your credit file.
     
    Hodor, 31st Jul, 2015
    #3
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,658
    Location:
    Sydney
    The credit enquiry shows on your credit file but the outcome doesn't.
     
    Shahin_Afarin, 31st Jul, 2015
    #4
  5. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,238
    Location:
    Homeless
    Really? I stand corrected. Thanks
     
    Hodor, 31st Jul, 2015
    #5
  6. Steven Ryan

    Steven Ryan Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,656
    Possible but unethical.
     
    Steven Ryan, 31st Jul, 2015
    #6
    Perp likes this.
  7. Perp

    Perp Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    735
    Location:
    Brisbane
    And illegal.
     
    Perp, 31st Jul, 2015
    #7
  8. Chilliblue

    Chilliblue Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,605
    Location:
    Australia
    What about talking to vendor and seeing what their position is
     
    Chilliblue, 1st Aug, 2015
    #8
  9. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,163
    Location:
    03 9877 3000
    I once had a client who was informed that he was about to be made redundant. In light of that information, there was a high probability that he'd have trouble making repayments if he took the loan. We informed the bank, they declined the application and he exited the contact under the finance clause. In this instance everything was above board and based on the information available, it was in the best interests of the client.

    If someone asked me to deliberately fail a finance application, I simply wouldn't waste my time submitting it. Ethics and legalities aside, it costs me time and money to simply submit an application, usually a lot more than their exit penalty. Frankly I've got better things to do than have my time wasted in this manner, I'd rather spend it on clients who are serious about what they're doing.
     
    Peter_Tersteeg, 1st Aug, 2015
    #9
    Jamie Moore and Perp like this.
  10. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,932
    Location:
    Australia wide
    Terry_w, 1st Aug, 2015
    #10
    Chilliblue and Perp like this.
  11. Chilliblue

    Chilliblue Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,605
    Location:
    Australia
    Great read Terry
     
    Chilliblue, 1st Aug, 2015
    #11