Is there someone out there who can help me with their personal experience or knowledge in regards to getting an extension on the bank's loan offer?
Our land was originally meant to title in Feb/Mar 2010. So when we first deposited on the land back in Aug 2009, and got our loan approved in November 2009, we thought we would have plenty of time to settle on the land within the 180 days from the loan offer date (this is a clause in the bank's loan offer).
But the land did not title in Feb/Mar 2010 as originally noted, nor did it title in mid-late March, as stated by the agent. Nor did it title in mid-late April, as stated by the Vendor. And to this day, it still has not titled. The latest estimations we have been given are "3 weeks" (this is what the agent told me) and "many weeks" (this is what the vendor's solicitor told my solicitor!) We were even given a letter from the Vendor in early April (for the SRO, as we needed it to obtain an extension on the 26 week qualifying period for the Boost grant) and in that letter he stated that titles should be forthcoming within the next 2-3 weeks!!!
So, our loan offer expired in mid May, and our Broker has requested from the bank an extension, but only got an extension until 11th June 2010. Grrrr!!!
What I really need advice on is:
* Is this small period of extension normal or is this just my Broker not doing a very good job? Under the circumstances, wouldn't it have been safer to ask the bank for a longer extension than 3-4 weeks?
* Does anyone know what is the normal procedure for obtaining extensions on loan offers?
* What is typically the longest extension the bank will give ( if personal circumstances have not changed)? We bank with Westpac, if this matters.
* If we have to re-apply for the loan again, does our Broker have the right to charge us their fee again? I know the bank can charge us some fees if we do not use the loan offer within the 180 days, but I don't know if the Broker will/can also charge us again/more??? (I'm really worried our Broker is not doing their utmost to get the loan extended, as if we have to re-apply again they may try charge us their fee all over again aswell, hence it's in their best financial interest for us to NOT get the loan extended!)
* What happens if we have to re-apply and within that time the land titles and the Vendor expects us to settle within 14 days, but we are only halfway through the process of re-applying hence cannot settle within that 14 days... what happens?
* If that happens (ie. the land titles but we are still waiting on another loan approval) can the vendor penalise us even though it is their fault this happened in the first place?
* Can we lose the land and our deposit?
Please can someone help answer these questions? Surely other people have been in this situation.
Thank you,
aldavies3.