Westpac cleaned me out

I'd be grateful for getting the loan in the first place and not blaming the bank for my life going to s###.its not the banks job to keep you employed.

 

The whole point is the loan should have never been approved.
How many high risk factors do you need before alarm bells start going off in your head.
Unfortunately these days, its full of people that are incapable of thinking for themselves and rely on a tick and flick exercise to manage risk , and look at each risk separately.
No shortage of fools here.
Seriously , how many people here would give a 55 year old single person ,a 25 year loan that works in a rough and tumble manual handling job with no leave entitlments and self employed , in a small town with limited employment opportunities, and in an industry that is renown for going through the good times and the bad times.
For a lot of guys that have worked in building and construction, and other manual handling jobs all the lives, the body is pretty well shot to pieces by the time the are in their 50s, many with back, muscular and joint issues, (tendons , ligaments and cartilage etc).Many companies wont even look at them , and age discrimination also plays a big part.
And they are fighting for jobs with guys halve their age that can run circles around them.
No shortage of foolish people here , including a few in paid positions on the other side of the fence, that should have been able to look at all the risks and just say no.
But when your in a sales driven culture, everyone just turns into "yes" people

 

Considering he had a large credit card debt it probably wasn't the banks best move but I don't think it's their fault.

Plenty of people in their 50s should be allowed to get a loan. They should realise that the bank doesn't intend for them to work for the next 30 years though and would need an exit strategy.

Whilst we will never know the full details of this story it makes little sense to me as to:
1. why didn't the guy rent out some rooms in his house to help pay the bills. From the get go or when he lost his job
2. why didn't he rent out his house and move to where the work was when he lost his local work. That would have kept the mortgage payment being paid
3. judging by the dates he maybe paid the mortgage for possibly less than 6mths (possibly up to a year) so it quickly go out of control and had no rainy day fund
4. why is his pension not enough money to rent?
5. why is his pension plus possibly a housemate not enough to have kept the house?

 

Yes but hes not the only one that it's happened too.perhaps people like him should take accountability for themselves and not blame others.just like much of societies issues people are always quick to blame others for their problems.if it was me I would do what I had to do to make sure the loan was paid.especially given the repayments weren't a large amount.as for manual work, it's a crock that they are competing with guys half their age.im in construction myself and I can tell you the guys in their 50s/60s are the toughest guys on the job site.the young guys simply cant compete with them.these guys have done decades in the industry and have done summer after summer in the heat.they are as tough as they come.if a hard working older man wants work, he gets it.its that simple.

 

Exactly.this guy had plenty of options but chose to do none of them.

 

If he was refused loan, the news story would have read “Greedy banks discriminating on customer age”.

The thing is that lending rules have to be black & white to promote consistency and fairness.

 

When you look at all the risk factors as one he should have never been given the loan.
Unfortunately he wasnt employed in a job sitting on his bum all day .
He was employed in a area of work that is brutal to older people, and on the body , working in a small country town with limited opportunities.
Unfortunately the banks were full of glorified sales staff that didn't have the intelligence to look at an application and conclude it was highly likely he was going to default given the nature of his employment , his age and type of work he was employed in.
The whole part of that industry needed a good kick up the backside .
No shortage of people these days that cannot do the jobs that they are actually employed to do .That includes those that thought it would be good to wrap buildings in flammable materials and build brand new building with lots a defects and a few more with major issues .

 

Do you apply those same standards when you rent out your property .
Would you rent out your property to someone that had a high chance of not being able to pay the rent .

 

Banks should round up all the ppl in their 50s ( in similarish situations ) who've got loans and made nice equity gains in the last 5 years and force them to sell asap and pay off their loans so they have no chance to fall into financial hardship .

Oh hang on a second. You won't hear them whinging. They made money for their retirement . Their risks paid off.

OK, so must be the folks whose risk didn't pay off who want to blame the banks for the risks THEY took.

How lovely . If only I could do the same for my risks which dont work out .

 

Im constantly amazed at the number of people that just assumed once the royal commission was finished , it was going to go just go back to the old ways.
This is probably going to play out for at least another year or two with lawsuits flying all over the place , and it is what it is.
The spotlight will remain on the financial institutions for a while yet.
In the meantime a lot more scrutiny will be placed on home loan applications , and a lot of people that could have gotten a big loan a few years back will find their applications declined.
Including those in the older age brackets that dont even have a permanent job , no exit plan and little or no other assets.
The writing was on the wall when the high court refused to ratify the fine between westpac and ASIC into responsible lending.

 

You wouldn’t sue the banks if it saved you hundreds of thousands of dollars?

 

And join the foolish ranks of the entitled losers? No thanks .

I'll never subscribe to that entitlement philosophy which ultimately, never breeds success.

 

But if it’s legal what’s the problem? Why hate on other people’s investmeng strategies. Gambling then suing the banks if you fail might turn out very successful for some people.

 

I'm assuming that's a facetious post.

 

Dude, a big reason investors exist is that we rent out our properties to those people banks didn't want to lend else they wouldn't be renting from us. Banks are already far more conservative than private landlords.

 

Actually, I do apply similar standards to tenants. I don't get a full statement of assets and liabilities, but some things have served me well:

* Get basic evidence of income and ensure that it's enough to manage the rent (no more than 1/3 of income goes to the rent).
* Tenant is not reliant on a third party to pay the rent. No guarantees from parents or ex-partners.
* Clean history - It would be nice to do a credit check, but I'll settle for references from property managers (not private landlords).

 

Plus I have learnt that picking the right property manager and establishing right expectations with them goes a long way in fixing most problems anyone could encounter with tenants.