Quote:
Originally Posted by Trendseeker
Plenty of loan contracts? Perhaps the lenders should be referred to the Australian legislation that prohibits lenders from repossessing property unless the borrower is in default and the lender has issued a notice giving 30 days....
You may be confusing mortgages with secured margin loans on investments. The lender can ask for the borrower to stump up more money if the LVR on their securities falls below a certain threshold.
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Perhaps things have changed since i signed people up. All i recall is that a borrower in negative equity needs to be very careful in managing their affairs, and give the bank no cause to exercise any of the more overlooked clauses in the loan contract.