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Fail finance on purpose?

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

  1. Kai41314

    Kai41314 Well-Known Member

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    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?
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Yes possible but very wrong
     
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  3. Hodor

    Hodor Well-Known Member

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    Has long term things to consider. It stays on your credit file.
     
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    The credit enquiry shows on your credit file but the outcome doesn't.
     
  5. Hodor

    Hodor Well-Known Member

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    Really? I stand corrected. Thanks
     
  6. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Possible but unethical.
     
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  7. Perp

    Perp Well-Known Member

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    And illegal.
     
  8. Chilliblue

    Chilliblue Well-Known Member

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    What about talking to vendor and seeing what their position is
     
  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    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.
     
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  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Chilliblue and Perp like this.
  11. Chilliblue

    Chilliblue Well-Known Member

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    Great read Terry