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I made a careless mistake - arrears

Discussion in 'Property Finance' started by Taku Ekanayake, 1st Jul, 2016.

  1. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hi all,

    I have made a massive careless mistake.

    I am currently trying to get a loan with CBA, and it was only brought to my attention that two of my loans were in arrears for 8-10 days. This happened because I have two new loans with CBA and I hadn't realised that they automatically tried deducting the loan repayments through two separate CBA offset accounts (I currently have three) which had no funds in it - and hence the arrears have appeared.

    CBA pulled me up on it and I have immediately cleared the arrears.

    My applications is getting assessed again as we speak (as of Tuesday). My broker notified because it was pulled up as being in arrears, it is more than likely gonna go to Genworth for approval/assessing - in which case I would definitely not service.

    Has anyone experienced a similar issue, and will it definitely go to Genworth now for assessing?
    Is there anything I can do to help my case?
    Just to confirm, the arrears was in a CBA loan and the loan I'm trying to acquire is also CBA.
    I dropped the ball big time here!


    Cheers,
    Taku
     
  2. Dwalsh

    Dwalsh Well-Known Member

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    Hey mate I had this happen with my second house at about 22 years old. Pretty much hindered me for like a year even though it wasn't my fault. I did have money in the account, they stuffed up on their end. I got told nothing I can do about it pretty much, once the computer say you defaulted you have to wait your time until it clears. Just my experience.
     
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  3. Bran

    Bran Well-Known Member

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    This happened to me last refinance with 3-4 loans however I fixed then all the next day. Not sure how it's effected me. Pretty sure it was CBA mistake as well
     
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  4. Dwalsh

    Dwalsh Well-Known Member

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    They put you in a category and you can find out by the bank what category it is and how bad it is. I couldn't get finance with cba for a year. I could with other lenders though
     
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  5. Sonamic

    Sonamic Well-Known Member

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    Did you have funds to cover within the CBA system? This way they could see that you physically had the money and it was just a communication or clerical error. 8-10 days is a pretty big smudge if the funds were with another entity out of CBA sight.
    Lesson there for everyone.:p
     
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  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Combine a few late payments with a review by the mortgage insurer and you're probably in for a rough ride. Odds are if it were an 80% lend it would be brushed aside very easily, another reason why 80% LVRs are a superior strategy if you can fund it.

    A couple of missed payments is actually fairly common, most people have been late at one point or another. Lenders usually want to be understanding but mortgage insurers are significantly more conservative. Often the simple solution is to use a different lender.
     
  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    I've had little bits and pieces on my account, sometimes my fault from transferring late or banks fault for using wrong account.

    Since I use a good broker, he declares it up front in the application along with the explanation and never had trouble getting a loan over it.

    I think you telling the bank rather than them picking up on it is best way to go.
     
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  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    It won't be servicing that's the issue with Genworth (they are more generous than CBA), it will be their conservative nature that will make it fall over if anything.
     
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  9. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Bugger - two loans with 10 days late....and requiring LMI - it's not going to be easy.

    Cheers

    Jamie
     
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  10. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Thanks for the feed back. The new loan is an 80% but the top up which is from CBA also is at 88%.
     
  11. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    @Jamie Moore the top up will be at 88% and but the new loan will be at 80% LVR - both with CBA. does this make any difference?
     
  12. Tranquilo

    Tranquilo Well-Known Member Premium Member

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    It doesn't seem fair someone who's doing everything in their power to get ahead.
    Good luck, I hope it all works out for you
     
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  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I've had clients that have done this in the past and it wasn't a problem. Especially if you had the money, it occurred at the beginning of the loan and was only an administrative type error, you should be able to explain it away. Just make sure you don't accidentally do it again.
     
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  14. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    I'm just concerned that my broker or I won't have the opportunity to explain as this will go straight to Genworth and bypass us for an explanation.
    Also, the bulk of my savings are in my ANZ offset so CBA don't have visibility to whether I had the money at the time.

    I have explained the mix up to the arrears dept. at CBA as soon as I was notified and asked them to write it in my file.
     
  15. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You should just pre-empt them asking by telling up front - but only if borrowing from CBA again. Don't tell other banks answers to questions they haven't asked.

    You can also supply copies of your ANZ statements to CBA to show you had the money and that it is simply an innocent mistake.
     
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  16. Xenia

    Xenia Adelaide Property Manager Business Member

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    I'm sure they see a lot of this Taku, you are not the only one.
     
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  17. TaylorChang

    TaylorChang Well-Known Member

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    Get your broker's BDM involve to push credit and Genworth.

    I think it can be done, just need to have reasonable explanation like you already have and keep pushing and escalation.

    Good luck :)
     
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  18. jim1964

    jim1964 Well-Known Member Premium Member

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    Gawd, over the years i have had late fees on statements,non payment fines,dishonour here and there,all of which came to the attention of the lender,i remember the broker making me write a essay on how sloppy my book keeping was at the time,the worst one was a query on a unpaid telco bill, which had been paid and had gone through the system and showed up on a Veda check.I pushed
    to get it removed and got a win,within a week, so that can be done if you are in the right.
     
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  19. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    This would be good but I have been told BDMs can't override Credit.
     
  20. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    They can't over ride credit, they can give support to the deal. My experience is unless the BDM knows something that's not obvious, they tend to agree with the credit decision anyway. Quite often I do too.
     
    Last edited: 1st Jul, 2016
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