Thousands hit by buy-to-let fraud

dopester

baby_boomer wrote: »

I can't be that sympathetic to a couple who let their naked greed take over their lives. They need to learn their lesson, pick themselves up and make a living like everyone else has to.

£2 million of rental properties in their portfolio, and then bought another 7 properties from Morris Properties.

How many properties does one person need? £2 million already "under management."

Then he suckered in more people, and sold 15 properties for Morris himself.

What I don't understand is this bit:

However, The Sunday Times has established that the investors in those properties are not the only ones who are set to lose out from the buy-to-let disaster that is rapidly unfolding across the country.

Northern Rock, Bradford & Bingley, Royal Bank of Scotland and HBOS – all banks in which the government has taken big stakes – are set to lose millions of pounds after issuing mortgages on properties that may have been worth only half what they were valued at.

Well in the case of Geoff and Jane, they must surely look take over their £2m portfolio and just about everything else they own. Send around the debt collectors to get friendly with them. They had zero sympathy about being part of the generation and culture which would bid up and buy all the properties so FTBs could barely get a look-in.

This couple brought it entirely upon themselves.

dopester

Gorgeous_George wrote: »

That's not how fraud works. If you use your logic then anything that is sold fraudulently wasn't sold fraudulently and that can't be.

GG

Well as long as it doesn't cause loads of other people try legal action for "fraud" as house prices fall back to 1992 levels.

polaroid

the problem with this situation though is that the man who ran it (in leeds) has been very greedy and he showboats a lot, drives around in a rolls royce, wears a £80K watch etc etc . many people who bought of him would probably agree that in hindsgiht they were stupid, they let greed take the better of them and now they are in a real miss. but the situation has been far worsened because of said person carrying on as normal and not once has he sat down with these investors and tried to help or advise them. i am not saying he has to, or he should do, but surely at the moment there are plenty of tenants around and tenants could be found and therefore be paying the mortgages ( or at least towards them). he did promise an "all in service". i hear he has been keeping all of the rent and living on it. now that is what i think is criminal.

Pssst

There are a lot of bent mortgage brokers around. I've known people get mortgages with either a tenuous employment record or with falsely inflated incomes i.e broker lies on forms to get the mortgage AND his fat commission.

Gorgeous_George

I have no sympathy for stupid people. Victims of organised fraud on the other hand deserve some.

GG

neverdespairgirl

If this was a scam, then it only worked because there were greedy muppets aching to fall for it.

Sidfletcher

baby_boomer wrote: »

Houses are effectively worth what banks are prepared to lend to people.

You can't accuse valuers of failing to predict the credit crunch when bankers and regulators missed the signs as well.


Valuers can indulge in fraud when arguing about the purchase price of a property, but what every lender required (and most lent against) was the expected monthly rental. I have had BTL applications turned down because of unachievable rentals - but then I had honest valuers. Estimating a monthly rental on a property is a farly simple task for anyone, let alone a professional. To get it so wildly wrong, as all the buy to let tales of woe seem to have experienced, can only be down to deliberate fraud by valuers.

chucky

fatpig wrote: »

Hard luck chuckey et al. Buy to let slummers shouldn't have let selfish greed cloud their judgement.

another idiot to go on Ignore.

funny they manage to spell the Username wrong - Same person maybe!?!?
There are really some losers in life - feel very sorry for the parents, they must be disappointed...

napoleon wrote: »

How come they haven't banned you yet chuckey then. You're the resident troll and nobody has banned you

ad44downey wrote: »

Give chuckey a break. He spent a couple of hours finding that web site.

It's just a shame it proved absolutely nothing, quite the opposite in fact.

Why can't the real person that is a regular poster be brave enough to post under their regular name... it's pretty obvious who it is... and it's not !!!!!!...

dopester

Sidfletcher wrote: »

Estimating a monthly rental on a property is a farly simple task for anyone, let alone a professional. To get it so wildly wrong, as all the buy to let tales of woe seem to have experienced, can only be down to deliberate fraud by valuers.

If so... then they should have been responsible for doing some of their own research in to the matter, before investing.

To me it is no different than when the Daily Mail's "This Is Money" MIDAS tipster had a full-page glamming-up why investing in Marconi was potentially great value in 99/2000.

dopester

MissMoneypenny wrote: »

Some interesting comments from the link

From the second article as well.

If the buyers thought the properties were overpriced at the time of purchase they would not have bought. The market is always right. The greedy investors duped themselves. Where's the fraud?

Love that one. "The market is always right."

Many of the firms involved used adverts, brochures and a slick sales pitch..” Whatever next?!

Fact is, buyers were motivated by greed – they thought they’d make something for nothing and now they find the folly of their greed, they want someone to blame. Haven’t they heard of caveat emptor?