A big 4 lender did not want to honour their approval which they have given for my client’s farm purchase. This created a very stressful situation where we are trying to meet the settlement due date, and our approval has been revoked. The lender advised that their staff has made an error previously, and it should not have been approved in the first place. But this is highly irresponsible of the lender to pull their approval now and they have no consideration for the interests of all parties involved.  

I went back to the drawing board to try and figure out a solution. Because of my close and long-standing relationship with my client, I recalled that he has stopped attending a business mentorship course. I added back that expense as income as it is non-continuing and just managed to get the deal over the line and secured the formal approval to settle the deal.

Due to the stress that the lender has created by irresponsibly back tracking on their initial approval, I have negotiated with them to reduce their fee to my client as a goodwill gesture and managed to save my client $2k in lender fees as well. My client is now a proud owner of a wheat farm and I am glad that I know his business thoroughly well for that was the fine line between a decline and an approval.