More fraud

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    More fraud

    Chelsea Building Society loses £41m to BTL fraudsters- see BBC item: http://news.bbc.co.uk/1/hi/business/8213504.stm
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    #2
    I'm not exactly sure how they've been defrauded. When a mortgage lender sends someone to value a property being purchased/mortgaged, there's no particular involvement from the purchaser/borrower in that process, the figures come from the mortgage lender's valuer. In any case, I always got the impression that valuers were told the purchaser's stated price and simply matched it unless there was something obviously amiss (eg property hopelessly overvalued by purchaser and/or unrealistically high achievable rent).

    The article seems to acknowledge that the borrowers are paying their loans. No problem there.

    Are we actually talking about inept valuations? Or over-enthusiastic lending? Or somefink else?

    Banks like to think they have a cushion of money/deposits/assets, they're worrying about their cushion.

    Comment


      #3
      Fraud & Building Societies?? The bigger fraud is luring punters in with well-advertised high interest rates then those rates sinking quietly without so much as a by-your-leave...

      Me, I'm with Zopa (roughly 9.5% interest rates and no bad debts yet)..
      www.zopa.com

      Cheers!

      Lodger
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        Originally posted by Poppy View Post
        I'm not exactly sure how they've been defrauded. When a mortgage lender sends someone to value a property being purchased/mortgaged, there's no particular involvement from the purchaser/borrower in that process, the figures come from the mortgage lender's valuer. In any case, I always got the impression that valuers were told the purchaser's stated price and simply matched it unless there was something obviously amiss (eg property hopelessly overvalued by purchaser and/or unrealistically high achievable rent).

        The article seems to acknowledge that the borrowers are paying their loans. No problem there.

        Are we actually talking about inept valuations? Or over-enthusiastic lending? Or somefink else?

        Banks like to think they have a cushion of money/deposits/assets, they're worrying about their cushion.
        It could be:
        a. over-optimistic mortgage valuers;
        b. lying/deceitful developers (with their array of cashbacks/'paid deposits'/discounts/incentives [all being a.k.a. price reductions not divulged to mortgagee]);
        c. collusive BTL purchasers; or
        d. solicitors for ditto, conveniently forgetting that duty of disclosure covers mortgageee client too.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment

        Latest Activity

        Collapse

        Working...
        X