on 28-09-2018 11:18 AM
When refinancing all the debt of Outgoing FI, there are scenarios where the outgoing FI is releasing two or more securities. But as an Incoming FI we are only registering mortgage on one of the properties being released. When setting up the workspace for the property we are not registering our mortgage over, the only role we can select is Incoming mortgagee. Should there be a option as Source Funder in this scenario as we are not taking over the mortgage but only paying out the debt? Please comment. Thanks.
on 28-09-2018 12:21 PM
Wouldn't your mortgage only include the 1 title rather than 2 so if you're the sole Source Fund for the Settlement then all the money from you and only 1 title is registered for the Mortgage and the other title released to the Proprietor. If the Borrower has additional equity to pay off the Mortgage then they either engage a Conveyancer/Solicitor to conduct their settlement on their behalf, or get pay into your Trust Account the additional equity.
on 02-10-2018 10:00 AM
Thanks for your reply. In most instances with refinance transactions, borrowers intend to release all the properties they held with Outgoing FI.
They put all the properties being discharged in a single discharge authority based on which the Pexa workspace is created.
If one of the properties being released is to be freehold upon payment of outstanding debt how can we set up the workspace other than Incoming mortgagee?