For decades mortgage fraud has cost British financial institutions hundreds of millions of pounds every year however with the recent buy to let boom and the subsequent sudden, unexpected financial crisis, losses due to mortgage fraud have started to be felt by private individuals who have invested money on the advice of mortgage brokers, investment […]
For decades mortgage fraud has cost British financial institutions hundreds of millions of pounds every year however with the recent buy to let boom and the subsequent sudden, unexpected financial crisis, losses due to mortgage fraud have started to be felt by private individuals who have invested money on the advice of mortgage brokers, investment advisers or financial consultants or who have underwritten property investment schemes with their personal assets. If you have lost money as a result of mortgage fraud we may be able to help. If you need free legal advice about dishonest solicitors, valuers, surveyors, mortgage brokers, estate agents, investment consultants or financial advisers just call the helpline or email your details to speak to a solicitor experienced in mortgage fraud, without further obligation.
Many of these fraudulent get rich quick schemes depended on a booming property market, coupled with corrupt valuers, surveyors, mortgage brokers, solicitors, investment consultants and financial advisers to facilitate the mortgage fraud however with the sudden drop in the value of property many investors have discovered that the amount of rent is insufficient to pay interest on the loans. Furthermore their properties were often bought at a massive overvalue, negating the necessity to provide a deposit with the lending institutions, usually a bank or building society, who have subsequently sought repayment of the shortfall from the personal assets of the individual borrower. What seemed a cheap, risk free investment at the beginning has, over a relatively short period of time, changed into a financial black hole with massive capital losses, worsening financial responsibilities and the prospect of interest rates rising rapidly in the future. It goes without saying that a large percentage of the mortgage funds advanced by the lending institution will have gone to line the pockets of the dishonest professionals who were involved in the initial deceptive
Mortgage fraud is not only apparent in investment schemes involving private individuals buying domestic property but it also occurs in many commercial property deals relating to the acquisition of assets by companies. In addition criminal gangs target certain lenders and with the assistance of dishonest solicitors, mortgage brokers, valuers and surveyors are able to borrow money in fictitious names against overvalued property before defaulting on payment and escaping with the proceeds. This type of scheme by organised gangs is often carried out on numerous identical properties on large building developments.
If you have been conned in a mortgage fraud all is not lost, even if the Limited Company that you dealt with has become insolvent or has ceased trading. A Limited Company usually gives protection to the directors who can rely on limited liability that does not touch or affect their own personal assets including their house, bank account and stocks and shares, however in the presence of corruption, even in the case of a limited liability company, the court will “lift the veil of incorporation” and will make the former directors personally liable for any debt incurred by the company thereby putting their home, personal assets and future earning power in to play. If the directors have colluded in a fraudulent transaction they cannot rely on limited liability and thereafter it is as if they were dealing on a personal full liability basis. As many of these directors are professionally qualified, some may have accrued substantial personal assets from either legitimate means or as a result of fraud, it may be possible to get judgement against them personally and enforce judgement against their personal assets before, in appropriate cases, making them bankrupt.
Fraudulent 3rd Parties
Even if you did not deal directly with some of the dishonest professionals that were involved and merely put your trust in a mortgage broker, financial adviser or investment consultant who employed these individuals to work on your behalf, they can still be brought in to the legal action and may also be held to be personally liable for fraudulent losses especially if they have facilitated the fraud as a result of their professional standing and expertise. For More Information Visit: UK probate solicitors