Browse Forums Home Finance 1 Jun 06, 2013 10:45 am Hi guys, I recently put a deposit on a block of land in the dandenong ranges. The loan conditions were *subject to finance *subject to soil test meeting the buyers requirements. The bank has declined the loan and has not given a reason. The vendors solicitor is asking for a reason as to why the finance has been declined and the bank have said they will not disclose the reason why. My conveyancer said the bank does not need to give a reason only that the finance has been declined and that meets the condition requirements on the contract. Legally where do I stand on getting my deposit back and the contract being at an end? Any help would be much appreciated. Re: Bank declined loan and now vendor keeping deposit! 2Jun 06, 2013 10:57 am I all depends on what you have signed. That said, a lawyer would be the best way to go if you want your money back. In most standard contracts the deposit is non refundable but some companies refund what they have not spent (there are reasonable administration costs that they should be compensated for). Did you go and talk to your bank manager? Ask them face to face and they will usually tell you why the finance was declined. In the meantime, I would suggest going to see a broker, they can often find finance for you where a bank has said no. Source - I write contracts (Melbourne based). "I never learned a thing until I finished school" - Unknown "You can get anything accomplished, If you don't mind who gets the credit" - Ned Hay Re: Bank declined loan and now vendor keeping deposit! 3Jun 07, 2013 2:31 am In most contracts the subject to finance clause should refer to a general condition which states the purchaser may end the contract if they have no loan approval as long as they have applied for the loan immediately and tried everything reasonably required to obtain approval, and given notice by the required time. As long as the conditions are met and you have done everything in your power, you should be able to get your full deposit back. If they refuse, I suggest you take it up with a solicitor. For the bigger picture moving forward you should try and work out why it was declined (so as to give yourself a better understanding on what you need to do to rectify the situation). You most likely failed their credit score, and the reasons for this could be a multitude of things. Without knowing your situation it would be guessing. Cheers Tom How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11893 Appreciate that Chippy. I won’t do sand under pavers and will connect all up under pavers, however I was going to do: 1) Roadbase compacted with manual hand tamper 2)… 10 18538 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 18896 |