New Builds fall 50%

socrates

mewbie wrote: »

How on earth can losing 120,000 be a non story? On MSE, the home of saving a few pence with a Tesco voucher?

If you set up a shell company and negotiate a deal with a developer to buy 10 plots or more.

You put down a £50,000 deposit to secure them. Then you begin to market them knowing you have a mortgage broker sorting out fraudulent mortgages and a valuer who will over value the properties.

You sell them on to unknowing customers - who are promised a 10% - 15% cash back on the valuation - in effect their deposit, stamp duty and solicitors fees.

In a rising market the property catches up and its all ok.

Or they create identities and sell them to individuals who do not exist or to people who could never get a mortgage - they get cashbacks, they rent them out - do not pay the mortgage and they get repossessed - when they are re-sold they go for their real value - affected by the price drops as well.

It happened in Thamesmead with 84 properties:

http://www.mortgagesolutions-online.com/public/showPage.html?page=463928

This has happened in many locations.

It does not mean new builds have dropped by 50% it means they have dropped 50% from the over inflated fraudulent valuations.

So it is a non story in that its not a true reflection of new builds falling by 50%.