Loan Scenarios
Scenario One
A client had recently been made redundant and was currently seeking employment. This period with little income resulted in significant loan arrears and credit default. The current mortgagee had issued a Statement of Claim and was moving quickly to take possession of the property; this applicant needed a quick economic solution to save their home.
MDN was able to provide the client with an instant approval to refinance the current mortgage and was able to settle in 10 days. It was agreed that the best way to provide the applicant with much needed breathing space was to prepay the 12 months interest payments from the loan proceeds. Since the MDN Mortgage, the applicant gained employment and with flawless loan statements due to the pre-paid interest, should have little difficulty qualifying for a main stream product at the end of the MDN loan term.
Scenario Two
This client had been deceived by his previous business partner who had embezzled significant money from the business and disappeared. The situation had left the applicant in a difficult position as money was owed to suppliers. The business itself was still trading strongly and income was not an issue, however the large sums owed to suppliers had resulted in a number of CRAA defaults and court judgments. Left unattended this situation could have resulted in bankruptcy. The applicant had previously attempted to raise capital, however the current default and judgments were making this very challenging and expensive.
MDN was happy to provide a mortgage to this client. A portion of the loan funds were utilised to clear all the defaults and judgments. Now that the applicants CRAA shows all listings as paid, they should have a much easier time qualifying for a longer term product at the end of the MDN loan term and can concentrate on building their business.
Scenario Three
The client was experiencing substantial hardship due to illness. They had spent the last three months in hospital but were now recovering and expected to re enter the workforce shortly. However during their stay in hospital, bills were mounting and this had resulted in a bankruptcy. The amount owed to clear this bankruptcy was small however being currently bankrupt virtually ruled out any possibly of refinancing.
MDN provided a mortgage to the client; a portion of the loan proceeds were untilised to pay the current creditors and annul the bankruptcy at settlement. We are happy to announce this applicant is now fully employed and back on their feet.
Scenario Four
This client was a developer and like a number of developers in the current market, was experiencing problems. They had recently completed a 10 unit development and were having difficulty selling the remaining units. Seven of the units had been sold off the plan however three units were remaining and the client decided rather than sell the units in a depressed market, they would hold and rent them for a period of time. As is often the case with developers, supporting information was virtually nonexistent and what little there was showed the company operating at a loss. Clearly this was a paper loss and did not represent the true condition of the company. To add to the clients troubles the original construction facility had expired and was now subject to default interest.
A fast trouble free settlement was needed.
MDN was able to provide the loan to the clients. Due to our in-house legal team we were able to settle in seven working days saving the clients thousands.
Scenario Five
These clients wished to purchase a new business but they were having difficulty raising funds. One of the applicants had previously been in business that had not been successful and the company had been placed into external administration. This situation was all but resolved, however with the applicants CRAA report noting this administration, raising the funds necessary was proving to be a problem. The applicant had a limited time frame in which to capitalise on this opportunity so a quick and economic answer was needed.
MDN was able to provide an offer instantly and settle quickly, securing the new business for the applicants. This business is trading strongly and now that the company administration has been resolved, these clients should be in a good position to move on to a prime lender at the end of the MDN loan term.
