There is a very important article with the sleeper title of Blue Chip loans disputed by Jane Phare of the New Zealand Herald.
Auckland barrister Paul Dale plans to apply for injunctions against finance companies involved in Blue Chip properties in cases where the loan application documents appear to be false or fraudulent.
He argues the mortgages should be set aside and is preparing to launch a precedent-setting battle against finance companies, including GE Finance, other lenders and their agents. The action could prevent the mortgagee sales of homes owned by desperate Blue Chip investors, many retired, who face losing everything.
To date, Dale has looked closely at four case studies, collectively worth about $2 million in disputed mortgages. “My own view is some of these mortgages are not enforceable,” he said…
I agree with Mr. Dale.
From what I can see, Dale is the only person that is willing to take practical action and wish him (and those smart enough to support him) all the best. Otherwise, everyone else seems to be defending the franchise and banking interests.
Attentive readers of the FranchiseFool might remember my Mar 19th posting called: Loan Contracts: Unenforceable or Voidable?
I asked if these mortgage debts were valid or:
It is certainly too early to tell but this is the most promising development to date, in my non-legal opinion.
Too bad the Clark government couldn’t help out ($) with some of the legal heavy-lifting but they are notable for their consistency.