A desperate couple with a payment due on an off-the-plan purchase came to Get Real Finance mortgage broker Steve Doherty for help as they were running out of time despite being granted an extension twice.
Doherty told MPA that when the couple signed the contract two years before, their plan was to use the equity of an existing investment home to seal the deal, as they were told they could do. However, their bank turned them down because the valuation on that home, which was located in a mining area, had dropped by about $180,000.
After consulting a few other brokers and banks, the couple was starting to realise that there might be no way out of losing $40,000 of their deposit and being sued for damages and costs. Both were extremely depressed and were already looking at selling all their properties and borrowing money from family.
Doherty admits the application came as a bit of a challenge, but he felt good about the chances of getting a right and timely outcome — and he did. He first explained to the couple the issue that they were facing regarding valuation and policy, which no one had done.
After Doherty did a couple of valuations, he produced an application fit for refinance. He then assisted the couple in processing the application until it got a formal approval with a mainstream lender that offered a decent interest rate.
The settlement went through, and the couple moved into their new unit without losing their other property. The second time the husband dropped by Doherty’s office was like chalk and cheese. He was much happier and brought a bottle of rum as a thank you gift.
“Try to look at the options,” Doherty said. “Explain the issues so the client can understand them. Last thing a client wants is a ‘does not fit policy’ response.”
In MPA’s happiest client short story series we showcase stand out ‘client success stories’ from brokers and discover what they learnt along the way. Leaving aside the details of the deal, we explore the human side of the story and how brokers really make an impact in people’s lives. If you have a client story you would like to share please email the editor, [email protected].