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Sledgehead

Bmv Shysters On Watchdog Now

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Anybody watching this?

I've seen Singing Piggies jumping on this bandwagon.

"Stay in your home free of charge" is the promise to vulnerable people who sell their house for 75% of its value, and rent back.

Trouble is an increasing number of fly-by-night operators are reneging on this promise.

They are being chucked out ... and I wonder how much the shysters then put the prop on the mkt for .... yeah, you guessed it.

The clients are usually in financial straits, due to ill health / loss of a working partner.

Lovely business. How do these f***ers sleep? Do they really think nobody else has worked out how to con their way to a fortune? Do they think they are smart or some kind of business geniuses?

Edited by Sledgehead

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Guest mattsta1964

Yes

Are there no limits to how ghastly some people are?

Very very depressing

Guaranteed to get much worse once people get in financial difficulties

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Some in the US have been doing this. : once they have title they have been remortgaging at the maximum amount possible (a friendly appriaser, re agent and broker no doubt coming in handy), douing this for a whole stack of money and walking off with the difference. After that the bills don;t get paid and the first thing people know is that the default letters start getting sent to the house. Now why would they do this? One simple reason, lots of poeple wanting to extricate themselves from their position - meaning very rapid build-up of inventory of houses to play this scam.

Central banks have polluted the whole economy with their cheap money effluent. You couldn't imagine things like this happening say back in 2001, the economy was a virtual tower of strength and cohesion compared to now.

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I don't understand. Did the program explain how they are getting them out of their homes?

Even if the banks attempt to repo from the new owner, the tenants would still have an overriding legal interest in the property and be allowed to stay (presumably for as long as they wanted). At least I think that would be the situation in this country.

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What baffled me about the first couple was they had owned and lived in their house for over forty years and the reason they had to sell was they were in mortgage areas WTF was all that about, I thought that mortgages longer than 20/25 years was a recent development so they should have had their deeds in a tin under the bed and ben mortgage and debt free.

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I don't understand. Did the program explain how they are getting them out of their homes?

Even if the banks attempt to repo from the new owner, the tenants would still have an overriding legal interest in the property and be allowed to stay (presumably for as long as they wanted). At least I think that would be the situation in this country.

Nope, mandatory eviction.

It's the way the lenders like it, they can foist BTL on the popualtion and the population can just go ****** themselves if it turns sour.

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What baffled me about the first couple was they had owned and lived in their house for over forty years and the reason they had to sell was they were in mortgage areas WTF was all that about, I thought that mortgages longer than 20/25 years was a recent development so they should have had their deeds in a tin under the bed and ben mortgage and debt free.

One of my neighbours is in his mid 70s and he is still working to pay off his mortgage.

People remortgage to add extensions, room conversions or even go on holiday, buy a car or pay for private healthcare.

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Anybody watching this?

I've seen Singing Piggies jumping on this bandwagon.

"Stay in your home free of charge" is the promise to vulnerable people who sell their house for 75% of its value, and rent back.

Trouble is an increasing number of fly-by-night operators are reneging on this promise.

They are being chucked out ... and I wonder how much the shysters then put the prop on the mkt for .... yeah, you guessed it.

The clients are usually in financial straits, due to ill health / loss of a working partner.

Lovely business. How do these f***ers sleep? Do they really think nobody else has worked out how to con their way to a fortune? Do they think they are smart or some kind of business geniuses?

welcome to the free market...the place where regulation = nanny state.

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Some in the US have been doing this. : once they have title they have been remortgaging at the maximum amount possible (a friendly appriaser, re agent and broker no doubt coming in handy), douing this for a whole stack of money and walking off with the difference. After that the bills don;t get paid and the first thing people know is that the default letters start getting sent to the house. Now why would they do this? One simple reason, lots of poeple wanting to extricate themselves from their position - meaning very rapid build-up of inventory of houses to play this scam.

Central banks have polluted the whole economy with their cheap money effluent. You couldn't imagine things like this happening say back in 2001, the economy was a virtual tower of strength and cohesion compared to now.

They mentioned that the BMV buyer who bought the house had bought hundreds of properties. And she's defaulting on the mortgage???

What I immediately thought was the following:

Buy a property 25% BMV. e.g. 200k property, pay 150k. Deposit of 15k with a subprime lender (mortgage is 135k). Remortgage to 90% of value of property, i.e. 180k mortgage, 45k MEW. You have increased your cash position by 30k from where you started.

Repeat several hundred times. You now have about £6m is cash.

Ship the cash offshore. Default on mortgages and disappear into the ether.

Alternatively, set up BMV as a ltd company. Pay out £6m in director's salaries, divs, consultancy fees. Default on mortgages and walk away from ltd. company leaving it to the liquidators/ repossession.

Scamtastic!

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Smell the Fear

No need to underpay, though if you do it just menas more profit, find some friendlies (all the way along the mortgage chain) and remortge for £250k a pop. Higher comissions all the way along the chain including the lender to sell off the loan into the secondary makret who has not one clue about the individual properties in a tranch of mortgage debt.

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Guest The_Oldie

One of them registered here and put up a couple of posts this morning touting for business.

He won't be back ;).

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I seem to be disagreeing with everyone at the moment but that's just the way i am. Didn't see the TV program so don't know what was said. Have heard about their dirty tricks and don't agree with the rent and kick out option, however:

1) these companies are 'house dealers' in the same way you get used car dealers. If you take your car to a garage, you won't get the same for it as you would from a private sale, so why should it be any different for a house. The suggestion seems to be that they should prop up the market at whatever value an EA puts on it

2) most bears on here think property is at least 20% overvalued, and so offering 20-30% below 'market value' seems sensible - it also sets the market value much lower

3) these companies take a huge risk, especially in a market downturn such as the one we are entering - in the 90s most of them went bust when they were stuck with stock they couldn't sell and i expect that to happen again

So, whilst i sympathise with people who have effectively been conned, many of these compnies won't do the rent back option and are just a business looking for a profit

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