HELP, Problem with Westpac

brbp · Oct 20, 2012 11:19 pm

Ok so we brought a block at the end of last year, at the time we did pre-approval for the construction as we'd already started talks with our builder. Long story short, due to our sales person stuffing us around we went way over the 3 month pre-approval time frame so had to resubmit everything from scratch. So we only resubmitted everything to the bank beginning of Sept. There was some more stuffing around, our broker said it was the bank, but I suspect it was both bank & broker. But FINALLY we received confirmation of unconditional about the 25th Sept, letter from WESTPAC to our broker for our builder stating unconditional came through dated the 28th Sept. Then last friday we signed all our mortgage docs with the bank.

At this stage we discussed with our broker paying the rest of the 5% deposit, even though the bank are funding the entire contruction part. (We have equity in our land) Anyway our broker said yeah go ahead cause we needed to get footings done by 23 Oct to satisfy our QLD Build Grant & we'd get money back at the end, so we did that. So footings are done, slab is booked in for Monday & yesterday we get a call from our broker to say Westpac are saying our loan should now NOT have gone unconditional!!!!

Basically there are some things we are either supplying ourselves or using our own trades for (both supply & labour & labour only), which we're paying for, NONE of them are being funded by the bank. So Westpac are now saying that their valuer (westpac use their own in house valuer) or that they "think" cause he's on holidays & can't reach him, incorrectly did the valuation with the things included, even though it clearly says in the contract that they are not. So now westpac are requesting quotes for those items, which I have no problem supplying to them, but some of them will take a while to come through. But the bank is also saying that they may need to charge us more mortgage insurance too!! My other concern is my slab is being poured monday so I'm going to get an invoice for 1st progress payment next week which has to be paid in 5 working days. If these quotes don't come straight in & this doesn't all get sorted out, it might delay payment, which means we'll have to pay default interest to the builder.

Bloody hell it's a bit mess & I have no idea what if any rights or recourse we have. Help, any advice??

Sorry this is so long

ECOECO · Oct 21, 2012 8:34 am

brbp

Ok so we brought a block at the end of last year, at the time we did pre-approval for the construction as we'd already started talks with our builder. Long story short, due to our sales person stuffing us around we went way over the 3 month pre-approval time frame so had to resubmit everything from scratch. So we only resubmitted everything to the bank beginning of Sept. There was some more stuffing around, our broker said it was the bank, but I suspect it was both bank & broker. But FINALLY we received confirmation of unconditional about the 25th Sept, letter from WESTPAC to our broker for our builder stating unconditional came through dated the 28th Sept. Then last friday we signed all our mortgage docs with the bank.

At this stage we discussed with our broker paying the rest of the 5% deposit, even though the bank are funding the entire contruction part. (We have equity in our land) Anyway our broker said yeah go ahead cause we needed to get footings done by 23 Oct to satisfy our QLD Build Grant & we'd get money back at the end, so we did that. So footings are done, slab is booked in for Monday & yesterday we get a call from our broker to say Westpac are saying our loan should now NOT have gone unconditional!!!!

Basically there are some things we are either supplying ourselves or using our own trades for (both supply & labour & labour only), which we're paying for, NONE of them are being funded by the bank. So Westpac are now saying that their valuer (westpac use their own in house valuer) or that they "think" cause he's on holidays & can't reach him, incorrectly did the valuation with the things included, even though it clearly says in the contract that they are not. So now westpac are requesting quotes for those items, which I have no problem supplying to them, but some of them will take a while to come through. But the bank is also saying that they may need to charge us more mortgage insurance too!! My other concern is my slab is being poured monday so I'm going to get an invoice for 1st progress payment next week which has to be paid in 5 working days. If these quotes don't come straight in & this doesn't all get sorted out, it might delay payment, which means we'll have to pay default interest to the builder.

Bloody hell it's a bit mess & I have no idea what if any rights or recourse we have. Help, any advice??

Sorry this is so long

A conditional unconditional loan? Their problem. Their mistake has committed you to a path moving forward, and it will cost you (and them) to simply stop midstream... Talk to your bank manager about taking this to the Bank Ombudsman... don't write to the BO yet, just talk about it first... It costs the bank $50,000 to be investigated if you write to the BO, so the threat is expensive and more useful than actually seeing the BO first.

Ed

startech · Oct 21, 2012 3:22 pm

ed @ ecoclassic

A conditional unconditional loan? Their problem. Their mistake has committed you to a path moving forward, and it will cost you (and them) to simply stop midstream... Talk to your bank manager about taking this to the Bank Ombudsman... don't write to the BO yet, just talk about it first... It costs the bank $50,000 to be investigated if you write to the BO, so the threat is expensive and more useful than actually seeing the BO first.

Ed

Hi Ed,

Assuming you are referring to FOS? If so then the cost to the bank is nowhere near that amount. Still definitely a course of action, but FOS won't consider any complaints unless the bank has had a chance to respond to a complaint first.

brbp given that time is of the essence, and that you have signed mortgage docs, speak to Westpac as a matter of urgency, highlight the need to resolve this quickly for yourself, and don't forget to write everything down - who you spoke to, etc etc.

ECOECO · Oct 22, 2012 11:00 am

startech

ed @ ecoclassic

A conditional unconditional loan? Their problem. Their mistake has committed you to a path moving forward, and it will cost you (and them) to simply stop midstream... Talk to your bank manager about taking this to the Bank Ombudsman... don't write to the BO yet, just talk about it first... It costs the bank $50,000 to be investigated if you write to the BO, so the threat is expensive and more useful than actually seeing the BO first.

Ed

Hi Ed,

Assuming you are referring to FOS? If so then the cost to the bank is nowhere near that amount. Still definitely a course of action, but FOS won't consider any complaints unless the bank has had a chance to respond to a complaint first.

The Financial Ombudsman Services always accepts jurisdiction, the case is open and incurs FOS fees as long as it takes for the customer to be satisfied, there is no limit. Banks base their decision on whether the case costs make the argument worthwhile. But I am sure you know more than me.

Ed

Marty McDonald · Oct 24, 2012 5:46 pm

Not a good situation but I agree wirth Ed. They signed off on it thier problem. I have had a few lenders try and pull their approvals on me / my clients but thankfully they have always renegged in the end (is that the right spelling ::wornout::

) after a massive push back and general threats of legal action / complaints / ombudsman etc.

I would advise you get involved and hit the complaints dep first. No direspect to your broker they probably want to punch the assessor too but they have to act in a professional mannner as they may have other current and future clients to consider. So they can push their contacts but ulti matekly yoiu will have more success if you attack on both fronts.