A Truck Driver who had completed the first stage (24 allotments) of a Land division in an outer capital city suburb and had achieved sales of more than 50% of the allotments was advised by his Bank that the loan term had expired and that the Bank were not prepared to continue its support. In fact, the bank took control of the development as Mortgagees in possession.
For 6 months the project lay in limbo with a full suspension of the works for the second stage and no efforts by the Bank to sell the remaining completed 11 allotments in stage 1. When the Borrower learned of the Bank’s intention to sell the project as a whole (Stage 1 completed allotments and the Englobo land for stage 2) in one line for not much more than the amount that was owed to the Bank the Borrower made representation to the Bank to be able to redeem his project. Bank advised him that it would release the security in return for full payment of its debt.
Eastwood Securities provided the funding to allow the Borrower to repay the Bank and take control of marketing and sale of the remaining 11 completed allotments on an agreed timing and sales plan.
Borrower achieved the required allotment sales in a timely manner and was allowed to retain sufficient from these sales funds to commence the development of Stage 2.
The irony of it all is the Bank (identity withheld) upon observing the Borrower’s recent successes approached him and agreed to take over and resume the funding for the project.