Financial ombudsman Suncorp problem

Discussion in 'Finance & Banking' started by Sharron__, 13th Mar, 2017.

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

    Sharron__ New Member

    Joined:
    13th Mar, 2017
    Posts:
    2
    Location:
    Melbourne
    Hi all,
    I have a problem with my bank Suncorp who have now put me into a situation where I cannot pay off my arrears on the mortgage and they are threatening to sell my house which is currently going through a subdivision which has got around 200k added value. They are refusing to consider revaluation of my property which will greatly reduce the debt equity ratio and hence bring me in line with their debt policies. They have put me in this position by finding minor faults and hence not capitalising previous arrears. They last did a valuation in 2013 and are refusing to do another one. Being a house in Melbourne the value has greatly increased but they refuse to revalue.
    Can someone please advise what I can do and if the ombudsman will pick up on this grave injustice.
    Thanks
     
    2 people like this.
  2. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    9,391
    Location:
    Sydney
    Most likely their lending policies have changed so much that you wouldn't qualify for a new loan anyway so their hands are tied - everyone's policies have changed post-APRA.

    Hopefully @Corey Batt or one of our other brokers can offer some suggestions?
     
    2 people like this.
  3. Sharron__

    Sharron__ New Member

    Joined:
    13th Mar, 2017
    Posts:
    2
    Location:
    Melbourne
    There's no need for a new loan, just a revaluation so that arrears can be capitalised.
    They put me in this situation and now they are bullying me and treatening to sell my house.
    There has got to be some law against this.
     
    2 people like this.
  4. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,141
    Location:
    Homeless
    Capitalising the arrears will increase total lending, no lender can increase lending if under their (new) policies you can't qualify to service that amount.

    Lending requires both equity and serviceability.

    Speak with a broker asap who may have a solution, good luck.
     
    4 people like this.
  5. Terry_w

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

    Joined:
    9th Jun, 2006
    Posts:
    27,519
    Location:
    Australia wide
    You should seek advice about refinancing to allow you to complete the subdivision. It will be very costly and difficult to do but if the bank takes possession you could lose a lot more.
     
    2 people like this.
  6. Corey Batt

    Corey Batt Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    2,090
    Location:
    Adelaide, SA
    Lenders aren't going to allow you to keep capitalising arrears - this is only done in very small amounts (ie a $10-50 late fee), not allowing you to put actual costs back onto the loan in any meaningful manner.

    If you don't want to have the bank foreclose - you need to meet the terms of the contract and meet your repayments.

    The only alternative is to look at an alternative lender, which if good conduct is not noted will be via a credit impairment specialised lender (expensive) or short term funder (very expensive).
     
    4 people like this.
  7. Gill Bates

    Gill Bates Well-Known Member

    Joined:
    28th Dec, 2006
    Posts:
    79
    Location:
    Brisbane
  8. Gill Bates

    Gill Bates Well-Known Member

    Joined:
    28th Dec, 2006
    Posts:
    79
    Location:
    Brisbane