This is only my second post so forgive me if the sound a bit naive…
I recently spoke to a retired senior bank manager and I asked him about wraps since i recently bought the Wrap Kit to get into my first IP.
He told me a story where a retired person sold his property on a wrap to a client. Prior to it settling, the client in turn was able to secure loans based on the property with a bank. Supposedly the wrappee defaulted on the bank loan, the bank took over the property and sold it. There funds from the sale was only enough to pay back the bank and the poor retiree was left without anything.
Just wondering…is such a scenario possible? The bank manager mentioned the retiree may have been ‘tricked’ into allowing the property to be used as security for the wrappee.
I don’t see how that could have happened.
With a wrap, the title stays in the wrappers name. So it owuld have been in the retiree’s name. So the client – the wrappe- would not have been able to secure a loan against this property. Unless they tricked the owner into offering a guarrantee etc. – In such a case, this oculd happen to anyone, and the wrap would have nothing to do with the process.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry is a 100% right (once again!!)
Thanks for that Terry. The story is from a reliable source so yes they must have gotten the guarantee from the wrapper…
regards
Infinite
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