NAB seeking right to evict tenants without notice

[Jennifer13]

Hmmm... I hope the bank doesn't get this through the court. Because if they do, I find it unlikely they'll be the only bank who'll start doing this. It will set a precedent.

I think you'll find it's more likely that the banks will use it when they need to, rather than every time someone defaults. But I agree with everything Tobily has said too. It's not a good path to go down. I think an additional letter to the real estate institute requiring them to clarify whether or not they will suggest that agents verify the financial position of all landlords before renting out properties is in order too.

ETA: I looked up the story in full and it seems the landlords in question did not declare to the bank that the properties were being rented. I take it this is a requirement when you take out a home loan? So perhaps this will apply only when a landlord neglects to inform the bank. In which case, can renters ask for proof that any property with a mortgage is registered as such with the bank?

Anyone know the situation in other states?

[*Ang*]

I used to work in lending years and years ago...there are different interest rates and home loan options for different scenarios...ie an investment home loan will attract a different (usually higher) interest rate then one for an owner occupier. There are also different packages associated with both investment and owner occupier loans so perhaps the landlords in question sneakily tried to take advantage of a package or loan that was not appropriate to their situation hence then drastic action the banks are undertaking?

[Miss E]

That is disgusting. I hope our legal system stands up to the challenge and does not allow this to happen.

[Jennifer13]

I used to work in lending years and years ago...there are different interest rates and home loan options for different scenarios...ie an investment home loan will attract a different (usually higher) interest rate then one for an owner occupier. There are also different packages associated with both investment and owner occupier loans so perhaps the landlords in question sneakily tried to take advantage of a package or loan that was not appropriate to their situation hence then drastic action the banks are undertaking?

I thought that might be the case. I'll be interested to see if this then only applies to those who take out owner-occupier loans and don't disclose a change in this to their banks, rather than all home loans. In which case, the landlord is still the one doing the dodgy and it doesn't help the poor tenant, but surely Residential Tenancies Vic/NSW/etc could put in place protections to ensure this is checked before a property is allowed to be rented?