Repossession blunder

CookieBaker

Any advice?

Hi all,

My now 61-year-old mother re-mortgaged her £140, 000 home to purchase a BTL property in 2008.
All was granted, however late 2011 she experienced financial loss and difficulty, in 2012 she lost the BTL house to repossession, thankfully there was a surplus so she received a small payout (£7000), which helped with her situation.
Unfortunately, finances never recovered so her residing home was repossessed in 2013.
Since then we have appealed to the Broker (Bluefin Insurance) to shed some light on the repossession order on her residential home, our findings revealed that;

Both homes were mortgaged as BTL (Which was not what she applied for)
She allegedly had an Isa of £97,500 (which she has never had)
Earned £25,000 per year with a company she has never worked for.

Infuriated and frustrated we asked for proof of these claims, documentation or something, as this information is false. The Brokers could not give us the info’ of documentation simply because it does not exist.

We started a complaint with the financial ombudsman (March 2015), and they are taking sides with the Broker firm and do not see anything wrong with the Brokers procedure and conduct.
Is this behaviour allowed? We have no idea what to do next. She has nothing.

Thrugelmir

If your mother signed the application forms then she was party to the act of fraud.

CookieBaker

That's unfortunate, I see your point. Thank you

Landofwood

I think you need to consider what the likely outcome of pursuing this is.

I don't see any scenario where your Mother gets her properties back, or any kind of compensation.

I'm not an expert, just a random guy with an opinion on an open discussion forum.

CookieBaker

Yes, we are beyond the point of any kind of reinstatement, the agreement was wrong in the outset. Clarification is sought. Piece by piece we are working out what went wrong. Thanks. I think it's time for her to lay the issue to rest. Lesson learned for my siblings and I.

G_M

There are two possibilities:

1) at the time of application your mother did have an ISA and was earning £25K. You just did not know about it.

2) She did not have an ISA and was not earning £25K, but she falsely claimed on the forms she signed that the did.

CookieBaker

1) at the time of the application she did not and still does not have an Isa, we have asked her over and over again, she does not have one.

2) to my knowledge the Broker had filled the application in with her and knew that she did not have an Isa or Earn £25,000 per year, I don't understand why the broker accepted her application knowing that she would struggle to finance the re mortgage, surely they had the option to refuse

DTDfanBoy

What happened to the rest of her money, even if she made no mortgage repayments at all for 5 years that wouldn't equate to anything like £140,000

G_M

CookieBaker wrote: »

2) to my knowledge the Broker had filled the application in with her and knew that she did not have an Isa or Earn £25,000 per year, I don't understand why your mother signed her application knowing that she would struggle to finance the re mortgage and was commiting fraud, surely she had the option to refuse

Was she of sound mind at the time?

There seems to be an increasing trend for people to refuse to accept responsibility for their own actions and to seek to blame others for whatever goes wrong in their lives.....

King_Slayer

G_M wrote: »

Was she of sound mind at the time?

There seems to be an increasing trend for people to refuse to accept responsibility for their own actions and to seek to blame others for whatever goes wrong in their lives.....

I will have to agree, I've read of someone blaming the bank for even granting a mortgage (because property was no longer valued amount loaned). Also read someone blaming parents for 'unknown loan' in their name (resulting in mortgage being refused).

At some point before the repossession was the properties ever remortgaged? The mortgage was granted because she signed/ acknowledged the information submitted for the mortgage, which naturally increased her affordability. Don't shoot the messenger, the MA submitted the info given.

CookieBaker

I agree too, I do not believe in blame tactics, every sane adult has a choice and many choices, options and places to seek advice.

We the children of my mother are trying to gain an understanding of what exactly went wrong.
I believe that my mother must take on part responsibility as she signed the agreement. But again we the children would like some sort of clarification on what had happend.
And yes this case looks like fraud.