Seller extension - I'm liable for interest

Discussion in 'Loans & Mortgage Brokers' started by Bran, 31st Mar, 2016.

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  1. Bran

    Bran Well-Known Member

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    So, the seller can't settle today as planned and has requested an extension.

    My lender (Macquarie) require a release that Im liable for the interest from "the time they have allocated funds" regardless of when settlement occurs.

    Short of crashing the deal, and even if I do... if I sign the release - how long could I pay interest for? Forever?? THey have after all, allocated funds!

    Never had a seller need an extension before.
     
    Bran, 31st Mar, 2016
    #1
  2. Terry_w

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

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    perhaps they were cross collateralised and cannot release the mortgage as easily as though.

    I haven't seen this happen with Macquarie before either.
     
    Terry_w, 31st Mar, 2016
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  3. Bran

    Bran Well-Known Member

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    I had a 42 or 45 day settlement
     
    Bran, 31st Mar, 2016
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  4. Terry_w

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

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    I've seen it happen before where the vendor goes to book settlement at the last minute and their mortgagee says oh we will need to do a valuation on their other property...
     
    Terry_w, 31st Mar, 2016
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  5. Propagate

    Propagate Well-Known Member

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    Can you accept the extension on condition they pay your interest?
     
    Propagate, 1st Apr, 2016
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  6. Northy85

    Northy85 Well-Known Member

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    Hey mate, I did this to a seller 2 years ago. Basically I told them I could do a normal 30 day settlement with Building and Pest and told them that my finance was sorted. It wasn't, and my mortgage broker had to run around like a headless chook. We didn't get the finance in time and had to end up getting an almost 2 week extension.

    All that happened was the seller agreed and we paid penalty interest on the extra days. From memory it was 9%. Not a big deal everyone got their money and I ended up with the house.
     
    Northy85, 1st Apr, 2016
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  7. Bran

    Bran Well-Known Member

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    Yep. This is what I've done
     
    Bran, 1st Apr, 2016
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  8. Bran

    Bran Well-Known Member

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    I'm the buyer though - it's the opposite scenario. I'm ready to go
     
    Bran, 1st Apr, 2016
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  9. Northy85

    Northy85 Well-Known Member

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    Ah right, I just reread it. Good work on getting the interest paid.
     
    Northy85, 1st Apr, 2016
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  10. Northy85

    Northy85 Well-Known Member

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    Ah right, I just reread it. Good work on getting the interest paid.
     
    Northy85, 1st Apr, 2016
    #9
  11. Northy85

    Northy85 Well-Known Member

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    Ah right, I just reread it. Good work on getting the interest paid.
     
    Northy85, 1st Apr, 2016
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  12. Bran

    Bran Well-Known Member

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    1-2 days I don't mind, especially as I've had access to the property for a month. But, this means I've poured in time and money already.
     
    Bran, 1st Apr, 2016
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  13. Big Will

    Big Will Well-Known Member

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    So good it is worth saying 3x
    So good it is worth saying 3x
    So good it is worth saying 3x
     
    Big Will, 1st Apr, 2016
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  14. legallyblonde

    legallyblonde Well-Known Member

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    Great job getting the interest covered by the other party!

    It is BS the bank is charging you interest when the funds haven't been released!
     
    legallyblonde, 1st Apr, 2016
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  15. Bran

    Bran Well-Known Member

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    Settled today. Bring on a whole new raft of problems ;)

    GO MT GRAVATT EAST.

    Ha ha.
     
    Bran, 1st Apr, 2016
    #14
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  16. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    In the grand scheme of things 45 settlements are skinny on time available to lenders on both sides of the fence to be ready for settlement. I'm not a fan of settlements of short duration for this reason.
     
    JacM, 1st Apr, 2016
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  17. Azazel

    Azazel Well-Known Member

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    The trifecta!
     
    Azazel, 1st Apr, 2016
    #16
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