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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 42664
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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Where do I stand, I spoke to Bendigo Bank office whom I believed

Customer Question

Where do I stand,
I spoke to Bendigo Bank office whom I believed to be the manager regarding loans for investment properties purchased through our superannuation fund shortly before 4th May as our first email is dated 4th May 2015. One of my questions to the "manager" was can I have a 30yr term...the answer was Yes.
The Letter of Offer was not made until the 18th June…settlement was to be the 22nd June, the Term stated was 240months not 360 months, I am now told that Bendigo Bank won't do a thirty year term for superfunds!!
We signed the papers for 20yr term (our big mistake)
All of this time I was under the understanding that a 30year term was to be used!!!
Being that we've signed papers agreeing to the term, but taking into consideration the Letter of Offer was only presented 4 days before settlement where do we stand?
Judy
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.
Good Morning,My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.Have you signed anything?
Customer: replied 1 year ago.
Yes.
Customer: replied 1 year ago.
Did you read my full statement?
Expert:  Leon replied 1 year ago.
Good Morning,My apology my post was cut short. It was supposed to say "and when you did, did you get legal advise and have the document explained to you?"Have you requested the bank to extend the term and if it is possible?My suggestion is to settle so that you are not penalised and consider refinancing after settlement.
Customer: replied 1 year ago.
Yes they can not do a thirty year term...this is my problem!! They told me they could.
I did settle as to avoid penalties but I have a second house ready to settle in early July with the same scenario.
Customer: replied 1 year ago.
No legal advise was obtained at that time. Legal advise was obtained for all of the other requirements of borrowing through a Superfund...not the repayment options
Expert:  Leon replied 1 year ago.
Good AfternoonYou have to settle so you do not lose out. If you have evidence in wiring that they said that they would do a 30 years term you can then take them to to the ombudsman and also ACCC fro falls and misleading conduct. But you cannot afford not to settle as you will be in a position where you will lose the 10% deposit and be liable for further costs. When you obtained the legal advise did the solicitor explain to you as the guarantors about the terms of the loan etc?
Customer: replied 1 year ago.
I don't have the promise of 30 yr term in writing, it was a discussion held with two members of the bank.
We have settled on the first property, but the second one is due in one week.
Regarding your question about the legal advise...No, not really. We can furnish the loan so being guarantors is not an issue.
Expert:  Leon replied 1 year ago.
Good AfternoonYou have to be guarantors because the borrower has to be the Superannuation fund.
Customer: replied 1 year ago.
Yes I understand all of that and we've set up trustees companies and bare trusts etc. etc. etc. My argument with the Bendigo Bank is their giving me false information regarding the terms of the loans available to superfunds.
The costs and protocol involved in setting up these loans was way over the top, and I would be very hesitant in transferring the loans....although I would love to change banks now!!
Expert:  Leon replied 1 year ago.
Good Afternoon,I understand what you are saying, but your solicitors that should have also giving you appropriate advice and explain to you the term of the loan. This should have been done before you signed. In relation to Bendigo bank, you have a right to bring an action against them as they have misled you and produce the documents that do not comply with the original offer they proposed. You can report this to the ombudsman and hopefully they will assist in rectifying it. Once this property has settled your alternative option is to look at refinancing with another lender and obtaining a longer repayment period and if there are any penalties to Bendigo for paying out the loan early, then you would be seeking that these penalties be waived on the basis of their mistake.I would suggest you advise Bendigo that you have been misled and request that they rectify the problem by issuing new mortgage documents after settlement. If they refuse to do so then you should look at having an alternative lender refinance the loan. I hope this makes sense and is of assistance.
Customer: replied 1 year ago.
Thanks Leon
Expert:  Leon replied 1 year ago.
Good luck with it. You are very welcome and thank you for using my services. If I have missed anything, or you have any further questions please let me know If there is anything else in the future please do not hesitate to ask. Please do not forget to leave positive feedback. RegardsLeon
Expert:  Leon replied 1 year ago.
Good Evening.
I'm just following up our discussion earlier this week and seeing whether there is anything else I can assist you with.
If I have missed anything, or you have any further questions please let me know.
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
I look forward to hearing from you.
Regards
Leon

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