Curve ball?

Sooshie, its a doosie !… its bad enough trying to get back from 1 mortgage not multiple.

I cant go out and do deals… []
Im stuck at work still… but ive been spending most of my time in here, dont ya just love windows… when the boss comes past, the window drops… [8D]

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I noticed that Steve put your name “Sooshie” in his book!… im gathering you two are close friends.. ?

Regards,
Arty.
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Sooshie,

Sounds quite sad. Especially if he refuses to accept that he’s doing anything wrong. People with a “victim” mentality often seem to feel that the world owes them a favour, so they’re entitled indulge in what would otherwise be unacceptable (whether morally, ethically or legally) conduct.

Maybe he needs to know that a conviction for fraud usually carries a hefty jail term. I think the maximum is 5-7 years. I for one would not want to risk becoming Bubba’s long term beyatch in the clink. Then again, if he is thinking the way you’ve described, he’ll probably convince himself that he’s innocent and will never be convicted.

Alternatively, if he cares for his family, maybe he needs to realise that if even one of the banks cottons on, it’s all over (unless the 3 mortgages were slapped on with the consent and knowledge of all the banks) and his entire family is going to get tossed out on the streets – wife will be humiliated and kids don’t want to show their faces in school.

I hope this has a happy ending.

Cheers
M

P.S. technically, you could have a legitimate triple mortgage, with each mortgage having a different ranking priority. But practically, why would you? If you could borrow the money from three banks, why not just borrow it from the one?

Are you sure the 3 mortgages are from banks?
I’ve had a client wanting to refinance 3 mortgages down to one. The way it was, was
1st Mortgage to a bank
2nd Mortgage to another company, not a bank, who specialize in 2nd mortgages.
3rd Mortgage to another company, not a bank, who will lend to nearly anyone.

The total of the mortgages only added up to 90%LVR, but the interest rates on the 2nd and 3rd were quite high. He was self employed and could only get the 1st mortgage at 80%LVR, the second to 85%LVR and the third to 90%Lvr.

No doubt after consolidating into one, he probably went and did it again. But what can you do.

I’d just say, these are the facts(such and such), regardless of what you believe or feel, these are the facts. Also, you should tell your family as soon as possible. If you don’t take this seriously, See Ya.

Oh Sooshie, want an unhappy mess []

What is his income stream? Is there some way that a lender would be happy to take first dibs at his income, pre-banking in his account, to take over the whole fiasco?

Only thing I can think of so far – will ask around though.

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Mel

As an almost lawyer, my strategy for the situation would be:

-Basically, he has got to take ownership of this problem, that way he can also take ownership of his defense of the problem. At best case, he can make himself the victim

-Legally, this means he needs to own up (quickly) and with the same breath declare himself mentally deficient or some other mitigation mechanism.

At this rate, this guy will be found out. Once that occurs he loses control of the issue and his legal outcome will be totally out of his hands.

Unfortunately, Sooshie, you can be part of this solution. You could empower his family to hire the lawyer who could go to work. Otherwise, he is gone and his family will be a lot worse than if they embrace the problem now.

Hi Sooshie,

I think you’ve actually got a fast ball here, and it’s not aimed over the plate…!

I believe we should all take responsibilty for our own actions. Declaring bankruptcy is not taking responsibilty, rather shifting it onto the shoulders of others. The shoulders of people like property investors who at the end of the day pay for *John Doe’s* mistakes through higher bank fees.

What has this person spent the money on? Has he blown it gambling, funding a lifestyle, or does he actually have something to show for it, i.e a nice car and a boat?!

My suggestion would be to encourage him to sell off as many doodads and unused ownings as possible, downgrade both his lifestyle and essential personal assets like cars, and if possible increase his earnings.

Hopefully doing this may be able to pay out the lesser of the 3 mortgages upfront, and if he keeps up the original payments (sum of all 3 mortgage payments combined) then he’ll be well on his way to terminating the debts. He may also be able to consolidate once the 3rd is out of the way.

I’m assuming the debt is currently being serviced or the banks would be taking action already?

Also try offering him John Burley’s book ‘7 steps to successful investing’ I think is the title. It has some great information on minimising consumer spending and eliminating debt. Even the Millionair Next Door could be a good suggestion, take the approach of educating him rather than punishing him, he may suddenly see the light and will be much more willing to change if he feels he has found the solution. He may even go forward rather than backwards with this kind of approach, he obviously has the dream to succeed.

Good luck!!

Hi Sooshie.

Sorry, I don’t get it. From your example he would seem to have mortgaged the property for more than its full valuation, unless he had paid down some of the principle on the earlier mortgages?

As all mortgages interests are noted on the title, how did he manage this? The mortgages may be from different banks, but they will have each searched the title for prior mortgages. So presumably the third bank went in ‘with their eyes open’? So I am not sure where the fraud lies (apart from mortgaging the property he doesn’t own).

If the mortgages are higher than the value of the property, his best bet is to sell the property now himself, rather than one of the banks foreclose. That way he can get best price and retire as much of the debt as possible.

Then he can rent, pay off his liabilities over time, and hopefully recover his position eventually. Of course this all requires him to take personal responsibility, which doesn’t seem hopeful based on your posts. Good luck.

Cheers[]