Lender not collecting mortgage

Discussion in 'Loans & Mortgage Brokers' started by ChrisED, 20th Jan, 2020.

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  1. ChrisED

    ChrisED New Member

    Joined:
    20th Jan, 2020
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    Location:
    Sydney
    We have a unique dilemma. We have recently bought a property. The first mortgage payment was due a few weeks ago, but the lender hasn't withdrawn the funds from our account. We have checked our documents and we made sure that we filled in all the forms (including direct debit authorisation form) correctly.

    We have not yet received any phone calls or notices from the lender. When I looked up my online banking, there are no loan accounts set up.

    Would it be possible that our loan has been lost due to some admin error? What could be the consequence for us?
     
  2. Marg4000

    Marg4000 Well-Known Member

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    Location:
    Qld
    It is your responsibility to make the payment.

    Contact your lender and arrange to make the overdue payment immediately. Then follow up with your bank.

    The consequence will be the possibility of extra interest and/or a late fee. Also it may affect your credit rating.
     
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  3. Stoffo

    Stoffo Well-Known Member

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    14th Jul, 2016
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    2,706
    Location:
    Sydney
    Yes, contact the bank asap and ask.
    Nothing worse than a default on the first payment :confused:

    I have had this previously and stressed out
    When I rang the bank the first payment wasn't actually due until 5 weeks after settlement, first payment date was listed on the loan doc's .
     
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member

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    15th Aug, 2005
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    Location:
    Gold Coast
    Have had this happen more than once

    In one case Need Another Bank had accrued Penalty interest of over 200 k....................one of those clients that had a large portfolio, and wasnt overly attentive to the outgoings, like quite a few clients, they sometimes lose properties off their xcel.

    In another case, a client had a LOC for mill with no security :)

    ta

    rolf
     
  5. Marg4000

    Marg4000 Well-Known Member

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    It is important to be diligent after buying any property, checking that all payments and appropriate bills arrive and payment arrangements actually happen.

    We noticed after buying our first home that we didn’t receive any bill for council rates. We were not sure of the time frame, but after 12 months we knew things were not right. We contacted our local council and they advised that they had not been notified of the change of ownership. Property was close to council boundary and solicitor had sent notice to wrong council. The council sent us a rates notice and waived any late/penalty fees as we had brought the issue to their attention.
     
  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Location:
    Sydney
    Very common. The land title issue when a change of owner occurs doesnt update council. Most solictors and conveyancers will mention this in the settlement letter. Many dont.
    - Council
    - Water
    - Land tax
    - Strata (they may send it to the property anyway)

    Often picked up when we do the tax and note no payments. Or when client completes the checklist. Not that common.

    Q : How does this impact deductions ?
    A : Exception land tax the deduction is given when paid. Land tax arrears are based on the land tax assessment date and not when it is paid.
     
    Last edited: 21st Jan, 2020
  7. Redom

    Redom Mortgage Broker Business Member

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    18th Jun, 2015
    Posts:
    2,429
    Location:
    Sydney (Australia Wide)
    Best to speak to the bank about it - likely an admin error. Getting on top of it early should resolve any major headaches down the line. With a move to positive credit reporting where monthly repayments are noted on your credit file, worth picking up the phone sooner rather than later to protect your credit file.
     
    Lindsay_W likes this.