Tuesday, Apr 29, 2008
The scams that have been going on throughout the boom come to light
Evening Standard: Fraud and dodgy dealings emerge as property prices fall
Surveyors over-valuing, complacent solicitors, dodgy mortgage brokers... maybe 'Inside Track' and their ilk should watch out, as I'm sure there will be thousands of repossessions following in their wake over the next couple of years
Posted by doom&gloom @ 01:46 PM (410 views) Add Comment
5 Comments
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1. Jayk said...
Inside Track is already in administration:
http://www.thisismoney.co.uk/mortgages/buy-to-let/article.html?in_article_id=440950&in_page_id=56&ct=5
2. taffee said...
you would love to believe that some action would be taken..imo none will!
3. jack c said...
@taffee - "you would love to believe that some action would be taken..imo none will!"
Agreed, this runs to a very high level
4. doomwatch said...
My thoughts exactly; there are too many bent surveyors and solicitors out there.
They've all had their fat fingers in their, scooping out big slices from the property pyramid pie.
5. p. doff said...
''too many bent surveyors and solicitors out there''.
I doubt whether there are many 'bent' surveyors, although there are rogues in all walks of life. There may be plenty of incompetent surveyors who's main concern is the target driven bonus that substantially inflates the pay packet. With these guys, the reports are effectively 'rubber stamped' at the required estimated value on remortgage, or the advised purchase price on a sale. The BTL estimated rental will also not be scrutinised too harshly. Comparable evidence will simply be plucked from anywhere to support the required valuation as opposed to selecting relevant sales/rents.
In this way, the surveyor can churn out reports at breakneck speed as there will be no challenged valuations or other complaints to be dealt with. The surveyor will be regarded as a whizkid by the employer (and in many cases the lender and broker, who both want the deal to go through without hitch as they also have their targets) He will be held out as a shining example to other employees, who's targets are likely to be increased to the levels now regarded as achievable.
By the time the sh*t hits the fan and those blocks of flats are being repossessed to reveal the true situation, the surveyor will have moved on, having coined it throughout a decade or so of boom.
Bit like the banks really. Grab it while you can - all the others are risking these dodgy investments so it must be ok, innit. The bonuses are much better too.