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An epidemiology academic plunged into a bitter legal nightmare over buying her “dream home” because her bank was 13 minutes late in finalizing settlement has been dealt another blow.
Dr Loretta McKinnon fears she will soon be evicted from her rental property in central Brisbane, on which she made a winning bid of $580,000 at a 2021 auction.
She was delighted with the bargain purchase, especially after a similar property next door sold for $200,000 more a fortnight later.
But Dr McKinnon’s dreams were shattered just weeks later after his lender, the Commonwealth Bank, mistakenly ticked an incorrect box on official documents and missed the payment deadline to finalize the settlement by 90 days.
The seller terminated the transaction due to the late settlement and pocketed her $29,000 deposit, leaving the aspiring owner to pay both the rent and the loans she took out to purchase the property.
Loretta McKinnon (above, right) thought she bought her dream home two years ago, but the sale fell through a few weeks later.
Commonwealth Bank mistakenly checked an incorrect box on the documents and missed the payment deadline to finalize Loretta’s settlement.
Dr McKinnon spent two years in a complicated legal battle trying to acquire the three-bedroom Windsor property she has now called home for almost three years.
This included placing a caveat on the property to prevent the seller, who is also its owner, from selling to anyone else.
Dr McKinnon now faces a hefty legal bill and the threat of homelessness after losing his case to buy the house in Brisbane Supreme Court this month.
Judge Peter Applegarth asked Dr McKinnon to lift the caveat and pay the seller’s legal costs.
“I’m devastated,” she told Daily Mail Australia.
“The last two years have been really difficult.
“I didn’t do anything wrong but I’m the one being punished.”
“I don’t know what’s going to happen next. I feel like I’ve been beaten to a pulp.
A court ordered Dr McKinnon to remove the caveat she had placed on the property to prevent the seller, who is also her owner, from selling to anyone else.
Dr. McKinnon has spent the last two years warning others of his current plight. Pictured is signage outside his Brisbane home
Dr. McKinnon plans to appeal the recent court decision and continue his long fight for justice.
She was unable to move due to the rental shortage in Brisbane or change banks.
The tripling of interest rates over the past two years has also put a significant damper on his homeownership aspirations.
“I sold two assets to be able to buy this house, which was a really good deal,” she said.
“That $580,000 wouldn’t get me an apartment right now.”
“I can’t move either because there is no rental in Brisbane.
“The bank must be held accountable.”
The Real Estate Institute of Queensland has since amended its contractual requirements guidelines to include a grace period if a property settlement deadline cannot be met in time to be consistent with other states.
She says the Commonwealth Bank took a long time to admit its mistake and feels it is being held captive by the bank.
“The bank needs to help me acquire this house or find me a suitable replacement,” she said.
Loretta’s settlement failed after the Commonwealth Bank missed the payment deadline by 13 minutes. The seller kept her deposit and the house in Windsor (photo above) in which she still lives as a tenant.
“I think the bank did everything it could to ensure that the settlement could not take place.”
“I was a valuable, preferred customer, but they took away my banking privileges and treated me like an enemy. I would sever all ties if I could.
“I wouldn’t mind moving to a new house as I have been completely traumatized and trapped here for over two years now.
“The fear was always that I would have to stay here because CBA would not compensate me properly if I left.”
“I just hope it doesn’t break me in the meantime.”
A Commonwealth Bank spokeswoman told Daily Mail Australia it was not involved in legal proceedings regarding the removal of Dr McKinnon’s reserve between Dr McKinnon and the owner of the property.
Loretta McKinnon (pictured) plans to appeal recent court ruling
Loretta still lives in the Brisbane house she bid $580,000 on at a 2021 auction as a tenant
The bank added that it had spent the last seven months working with Dr McKinnon to resolve the situation and ensure his plight did not worsen.
“CBA actively negotiated with Dr. McKinnon and the owner of the home where she currently lives to facilitate the purchase of the residence,” the spokesperson said.
“Dr McKinnon did not accept CBA’s offers to resolve the dispute and completion of the purchase was not possible.
“CBA has confirmed to Dr McKinnon and the property owner that it wishes to continue to engage with them and has invited the parties to attend mediation to resolve any outstanding disputes.”
Loretta McKinnon (pictured) just wants the long legal saga to be over
Dr. McKinnon has not given up his legal fight, despite the threat of possible eviction (pictured, a sign in front of his “dream home”)
Commonwealth Bank stuff-up: Brisbane academic faces possible eviction as nightmare continues