Browse Forums Home Finance 1 May 26, 2016 4:29 pm Hi everyone, my name is David. Im new to this forum, and to property in general. My wife and I have recently decided to take the first home buying plunge (at 39 and 43 respectively!) but have come across a serious hurdle: I have a bad credit mark against my name from 2013. It's an outstanding credit card debt, which had gone into default, and which I've just paid. I've spoken to my mortgage broker who has advised that we might only be able to get a "3rd tier bank" loan. Specifically he mentioned Peppers. My research so far has revealed their interest rates are very high, which I was advised (by my broker) would be the case: because we're a "higher risk”. We are both casually employed in the arts industry, but consistently earn roughly 55-75K per annum. We have a great savings history, and no other defaults, we pay all of our bills, rent, etc on time. We also have close to 20% deposit (which depends on the size of the mortgage required, which depends on the property price). Essentially, aside from the one black X on my credit file, we're a good risk! We have a property in mind, which we really, really want, that goes to auction on June 18. My questions are: Should we consider a loan from one of the few companies that would deal with clients like us? And who, of those, would you recommend? Should we hold off entirely from buying until the black mark gets wiped from my credit history, in 2018? Should we hold off considering the current property jitters and future outlook? I’ve searched these forums, and the net in general, and Peppers gets pretty good customer reviews (for all of their loan products), but also had a lot of complaints (mostly customer service related). Confusing! So, in summing up, we’re really wanting to buy this house, but I don’t want to make a bad decision. We’re not desperate. Well, kind of! Thanks for reading, and for any advice. Regards, David Re: Bad Credit Home Loan Advice 2May 26, 2016 4:40 pm Hi David, Can't answer any of the last questions at all unfortunately as they're more philosophy & heart questions than black and white. Without knowing the full details I will say lenders do not like defaults at all, more so when they're to lenders (as opposed telcos or utilities, which they also see as serious but not quite as bad as another lender) and defaults that remain unpaid for a long time & it looks like have been ignored are the worst still. That said - if the default is not legitimate there can be mechanisms to remove them, companies that specialize in this. If not a non-conformer (peppers being one of the better ones) could be part of a path to get you in and avoid rising house costs or your deposit being frittered away....with a view to refinancing when your default is lifted, if this suits you, so don't think of it as a 30 year life sentence. Best of luck! Bec Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Bad Credit Home Loan Advice 3Jul 06, 2016 3:51 pm would be nice if we could find out how this story finished ... one post since May , looks like a spammer from the other side of the world perhaps. Re: Bad Credit Home Loan Advice 4Jul 07, 2016 11:09 am new_senior_citizen would be nice if we could find out how this story finished ... one post since May , looks like a spammer from the other side of the world perhaps. No, not a spammer, and I will be able to "finish this story" on the 11/12 July. Stay tuned. David Re: Bad Credit Home Loan Advice 5Jul 07, 2016 12:16 pm Refinance after the default drops off is a good way to go. Just because the interest is high, doesn't mean you need to pay that rate for +20 years. Good luck Creator of superduperonium, expert at expert things, nobel laureate, can hold my breath for 10 minutes. Re: Bad Credit Home Loan Advice 6Jul 07, 2016 4:52 pm Dee Dee new_senior_citizen would be nice if we could find out how this story finished ... one post since May , looks like a spammer from the other side of the world perhaps. No, not a spammer, and I will be able to "finish this story" on the 11/12 July. Stay tuned. David Fantastic !! Always talk to a few finance brokers, Dee Dee. Lending criteria and loan products available change ALL the time. By talking to a few brokers, you'll get a feel for whos clued into your lending requirements, and whos only interested in a sale. If you are really itching to wipe away the default, there are (crooks) solicitors that'll charge 1K+ to "look" at your case. Basically for anyone to default you, they have to follow a PROCESS by law (eg send a notice to your CORRECT address, notify you in writing that you are in arrears and will be default at a certain date, notify you to contact them and opportunities to avoid default etc etc. If you can PROVE that they did not follow LEGAL PROCEDURE you can goto the Credit Ombudsman (free) and they will argue with the institution that defaulted you directly. ONLY the institution that defaulted you can remove the listing, if they sold the debt to a third party, then seek the original default institution. Start with calling the institution and tell them you are seeking legal council about this unfair default and are requesting ALL paperwork and notices and call records they have in regards to your case. Then with this paperwork, goto your ombudsman and discuss. A solicitor will do this exact process.If you are really cluey and a smooth talker, you can remove the default on the spot while in discussion with the institution. This ONLY removes the default, a debt is a debt and remains outstanding + interest + fees. Good luck! 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 18897 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35192 You might be able to apply to divert the sewer at your expense. In NSW you would contact a Water services co-ordinator and they would give you advice as to whether or not… 1 16130 |