Help! Going from Approved to an "Induced" Decline

Ldtrial on 14/07/2015 - 23:54
Last edited 15/07/2015 - 00:23

Hi Guys,

I'm currently in abit of a situation:

I've had a home loan approved on the 20th of May from a bank.

Until now I have yet to sign the approval contract as the land that I'm buying is going to be titled only in October.

The loan contract (which I have yet to sign), states that the offer is only valid for 21 days after its disclosure date.

Recently, my family had an emergency situation and requires a good amount of money.

I wanted to offer the money I which I intend to use as the deposit to help my family with this emergency situation (it will be repaid in a few months time if used).

Therefore, I don't want to be tied up with any contract for the time being as my family may need the money at any time during these few weeks.

I have tried speaking to the land agent regarding my situation and have put forward my withdrawal letter with the agreement of the loss of my deposit for the land.

However, they have not been very understanding and refused to let me withdraw. Which means my only way out of the land contract is to receive a declined letter from the bank.

My plan is to either put aside the deposit to another Australian bank or to transfer it directly to my parent's bank account (which is not based in Australia).

As there are not enough money in the bank for the deposit, it will turn my loan approval into a declined state (after the loan offer has been revised as the old approval is no longer valid).

I have gotten my loan from a broker and I have yet to speak to him as I know he will be bias or inclined towards me not going ahead with my plan.

With the case above, my questions are:

How badly will this incident affect my credit history?

Will it be difficult for me to apply for another home loan with the same bank in the near future?

I understand that this is not an ideal situation nor choice to make but I would greatly appreciate for any advise or opinion.

Thank you in advance.

Financial

Comments

    • Geewhizz on 15/07/2015 - 06:17
      +2

      Sometimes it's better to just sit there and say nothing. When it's all said and done what difference does it really make that his lines are double spaced?

      It may be that OP is visually impaired, you wouldn't know.

  • DealzEddy123 on 15/07/2015 - 09:27

    i don't think I understand. You're saying they're forcing you to buy the land?

    If you havnt signed anything you don't have to pay them anything, you just lose the rights to reserve the land ( and any deposits you have paid)

  • nocure on 15/07/2015 - 10:07

    Have you signed anything?

  • Blockey on 15/07/2015 - 10:08

    Read the contract wording carefully, if the contract says something like "subject to satisfactory finance" you may be able to argue about what is satisfactory…

  • dtrial on 15/07/2015 - 10:08

    From my understanding, they are forcing me to buy the land as the land contract that I have signed, is subject to finance and will come into a full force unless it I have receive a decline letter from the bank. That is the only condition that is stated in the contract that allows me to have the right to terminate the contract.

    • pinchies on 15/07/2015 - 10:21
      +1

      I think you need a lawyer. Otherwise, it sounds like the money is as good as spent in the eyes of the contract.

  • Love a bargain on 15/07/2015 - 10:21

    Assuming you do indeed want the plot of land and that you'll be able to recover any sum that you might be lending to your family in a few months' time, maybe it's worth considering whether taking out a personal loan is an option. (Obviously I don't know how much money your family will need, whether you've maxed out your borrowing capacity by taking out the home loan, whether taking out a personal loan befor the home loan is settled will affect your home loan application, etc.)

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