Refinance Before a Mortgagee Sale With Urgent Short Term Finance

It does not change whether we can refinance the bank. We can repay a lender before or after it takes possession, and before or after it appoints a receiver, and either way our loan repays the bank at settlement, within 70% of the building's value. What can change is the payout figure, because a receiver's costs can be added to the debt. Ask the bank for a written payout figure now, before any appointment, and send it to us with the default notice and the building's details.

• →Refinancing a lender that has appointed a receiver

Access is arranged through the lender in possession or its agent, because they now control the building. Ask your solicitor to request access in writing for a refinance valuation, and give us the agent's contact details. Our in-house valuation team then books the inspection. Make the request on the day you call us, because we cannot issue final terms until the property has been valued.

The numbers fit inside our 70% limit. 70% of $2,400,000 is $1,680,000, which is $130,000 more than the $1,550,000 payout figure. Two things can change that. Our own valuation sets the value, not the agent's estimate, and enforcement costs and default interest increase every week the lender stays in possession, so the payout figure has to be updated to the settlement date. Send us the figure in writing, and we will tell you within hours whether the numbers still work and how our loan would be repaid.

Your solicitor needs to answer that, because it depends on your loan contract. Ask the solicitor to have the lender itemise every cost in writing and to raise any cost you dispute. For the refinance, the amount that matters is the figure the lender will accept to discharge the mortgage, and our loan has to cover it within 70% of the property's value. If the lender will not reduce the figure before settlement, your solicitor can advise whether to pay it and pursue the dispute afterwards.

Once the lender has been repaid and the mortgage is discharged at settlement, ask your solicitor to confirm with the lender that it has stopped collecting the rent. Your solicitor or property manager then writes to the tenants with the new payment details. Ask your solicitor to request a statement from the lender of the rent it collected while in possession and how it was applied to the loan. Check that statement against the payout figure before settlement.

Up to 24 months. Our terms run from 1 to 24 months, and we agree the term with you before settlement so that it covers your agent's campaign, the contract period and settlement, with room for a delay. Bring your agent's appraisal and proposed campaign when you call. We look at the property, the payout figure within 70% of its value and the sale timetable together.

• →Private lending when a mortgagee is in possession

It can, where the numbers work. A caveat or a mortgage over the property with no loan can secure the payout, and the two properties can be assessed together, with the 70% limit worked out across both. Send us the payout figure, the address of the second property and your plan for repaying us, whether that is selling one of the two properties or a bank refinance.

• →Caveat loans

There is no fixed waiting period, because each bank sets its own policy. Banks look for the arrears to be cleared and a period of on-time repayments, and a mortgage broker can tell you which banks would consider your application and when. We set our term, up to 24 months, around that answer. If a bank refinance is uncertain, the plan should also show how a sale of the property would repay us.

Ten days can be enough time if the numbers work and the paperwork moves quickly. We give terms within hours, and settlement can follow within 24 hours of signing the letter of offer, subject to the lender's discharge. Whether we can lend depends on the property, the payout figure within 70% of its value and how our loan will be repaid. Today, ask the lender for a written payout figure, send us the notice and the property details, and ask your solicitor to confirm the exact date the notice period ends.

You have two options, and your solicitor should advise on both. Your buyer can put the offer to the lender's agent, because the lender in possession controls the sale. Or a refinance can repay the lender, after which you sell to your buyer yourself. If your buyer can settle within a few months, a short term loan from us can repay the lender now, and your buyer's settlement repays us. Send us your buyer's offer with the payout figure.

The numbers fit inside our 70% limit. The two payouts total $2,050,000, which is about 64% of $3,200,000, so one first mortgage from us, from 9.7% p.a., can repay both lenders at settlement. Ask both lenders for written payout figures to the same settlement date, because both mortgages are discharged at once. Our own valuation sets the value we lend on.

• →First mortgage finance

We can refinance a loan that was used for business purposes, even when your home is the security. If the loan being enforced paid for your own home, the refinance would be consumer credit, which we do not provide, and a mortgage broker is the right first call.

A refinance can pay out the lender, and whether that stops the sale depends on how far the sale has gone. Before a contract is signed, paying the lender in full usually removes its reason to sell. After a contract is signed, your solicitor needs to advise.

The loan balance, arrears and default interest, plus the lender's enforcement costs, such as legal fees, the cost of taking possession and any agent's fees. The lender calculates it under your contract, so ask for it in writing.

We can, where the lender agrees to reinstate the loan once the arrears and its costs are paid. A second mortgage can fund that amount. Your solicitor can ask the lender whether it will accept reinstatement.

Yes, once the lender is paid out. Our loan replaces the enforcing lender, and you then run the sale with your own agent and timetable, with the sale repaying us.

In Queensland, the Property Law Act says a mortgagee must take reasonable care to sell at market value. Your solicitor can explain the rules in your state. Even so, a sale by the lender carries enforcement costs that come out of your equity.

Same-day settlement is possible, depending on your scenario and the lender's discharge process. The written payout figure and access for our valuer decide the timing, so arrange both on the day you call.

• →$250,000 funded in less than 2 hours
• →$3.2 million funded in 24 hours
• →$1.88 million settled in 48 hours

Yes. If loan arrears have left your business short, we can lend for wages, stock or supplier payments as well as the payout. We fund working capital for businesses in hospitality, retail, construction and other industries.

• →Retail lending
• →Working capital loans