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Banking & Finance

Loan & Mortgage Documents

Nicholas James Lawyers specialises in providing borrowers and lenders with loan and mortgage services that are personalised to our clients’ specific requirements and interests.

For borrowers, we focus on giving specific guidance on the loan facility documents that have been handed to them, as well as pointing out areas and hazards that they should be aware of. We also assist customers with the execution of loan paperwork and the completion of solicitor certificates, if necessary.

A mortgage is a financial instrument that is often secured by the collateral of a specific real estate property and for which the borrower receives cash upfront but is required to repay with a set of instalments. Mortgages enable many individuals and businesses to acquire assets. It’s critical to understand your obligations under the mortgage and loan contract; failing to do so will almost always result in the asset’s entire loss. Alternatively, if you are loan someone a large sum of money, make sure you have adequate security to cover your risks.

On the other hand, the loan agreement is the fundamental document that lays out the terms of the loan between the lender and the borrower. This is sometimes done in the form of a formal loan agreement, but it is more commonly done in the form of a letter or memorandum. The loan amount, period, interest rate, and what happens if the loan is not paid back should all be stated in the loan agreement.

During the length of the loan, it is critical to adhere to all provisions of the Loan Documents. You will be in default under the loan if you fail to comply with any of the requirements, including making a payment by the due date. When you default on a loan, your lender has the option of selling your home to collect the money you owe them. Your credit score may suffer as a result of your default.

The loan agreement, regardless of its type, is a contract between the borrower and the lender for the provision of loan money.

For lenders our focus is to offer a wide range of loan and mortgage documents drafting services to maximise protection for the lenders plus recovery work with an emphasis:

  • Preparing loan facility documents with mortgage and security attached to the loan facility.
  • Implementing enforcement procedures against defaulting borrowers.
  • Formulating strategies to recover amounts owing from the defaulting borrowers.
  • Assisting clients with the necessary procedures.

Non-bank lenders face a variety of dangers, including fraud, money laundering, and untrustworthy borrowers. As a result, non-bank lenders do thorough due diligence check, which includes conducting title searches, company searches, and credit checks, as well as obtaining property values.

These methods are intended to assist lenders in verifying and assessing the borrower or guarantor’s risk characteristics.

When you get guidance from an expert mortgage lawyer, your chances of success are much higher. Here at Nicholas James our team of loan and mortgage lawyers can provide legal advice at any time during the loan or mortgage process. For our clients, we are recognised for giving all viable answers and presenting realistic solutions with minimal obstacles.

We devote time to our clients’ matters to have a deeper understanding of their situations and legal needs. This allows us to anticipate potential difficulties from the start, give timely and relevant advice, and collaborate with each of our clients to produce accurate and appropriate solutions delivering positive outcomes for your business.

For experienced loan and mortgage lawyers, call Nicholas James Lawyers today.

FAQs

What documents does a Non-Bank Lender need?

A Non-Bank Lender wants to get the full story of your financial situation and will want to consider the equity position of the proposed facility. In order to do so, they may require documents including but not limited to asset and liability statements, contract of sale, proof of income, bank statements, and the like.

What Loan Documents are required to complete a non-bank transaction?

The suite of loan documents that follows a private funding loan offer have grown extensively in recent years to help protect the lender from any claims being by the borrower or guarantor as to the documents’ validity.  

The documents you will normally encounter include: 

  • The Loan Agreement 
  • Mortgage 
  • Power of Attorney 
  • Authority to Complete Documents 
  • Disbursement Authority 
  • Verification of Identity Forms 
  • Form of Acknowledgement 
  • Business Purpose Declaration 
  • Acknowledgement by Guarantor 

You will also be required to execute the documents with an Australian Legal Practitioner who will be asked to provide advice to you on the documents and complete an Australian Legal Practitioner’s Certificate. 

What happens if you default on a private loan?

It is important to comply with all terms of the Loan Documents during the term of the loan. If you fail to comply with any of the terms, including making a payment by the due date, you will fall into default under the loan. Once you default, the lender can take the next steps to recover the money you owe them, including selling your property. Default can also have negative consequences on your credit score.

What are the risks of non-bank lenders?

There are many risks that non-bank lenders face, including fraud, money laundering and untrustworthy borrowers. As a result, non-bank lenders carry out extensive due diligence procedures, including completing title searches, company searches and credit checks, as well as requiring property valuations. These procedures are designed to help lenders verify the borrower or guarantor and assess their risk factors. 

What is Non-Bank Lending?

A non-bank lender is a lender who is not a bank, building society or credit union, but one that has its own source of funds and lends those funds out with an added margin for profit. Further, Non-Bank Lenders offer short-term loans that include low doc loans, mezzanine loans, bad credit loans, business loans, construction funding and land bank loans.

What are the advantages of using a non-bank lender?

There are several advantages of using a non-bank lender compared to a traditional bank, including: 

  1. They are specialist lenders who can help higher-risk borrowers who were rejected by major banks due to a variety of reasons like their credit history or their employment status. 
  2. They have different and lenient methods for assessing existing and new debt. 
  3. They can assess an event of default on a case-by-case basis. 
  4. They can offer competitive and sometimes even cheaper interest rates than traditional banks. 
  5. They have significantly shorter turnaround times. 
  6. They offer a much more personalised service.

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