Hi all,
Three days ago I sent a letter to Neil Jenman.
I explained that I believe there is a good side to wrapping if it were conducted in an ethical manner.
I pointed out that the real estate agency business, as portrayed be Neil himself, is rotten to the core and that the Jenman organisation exists to promote ethics in real estate.
What I asked of Neil was some input as to how the the wrapping business can be conducted ethically and for the benefit of all concerned, because the business won’t go away and this needs to be addressed.
To date I have recieved no reply from Jenman and at this stage don’t expect to get one.
Perhaps as somebody on this forum has said: Perhaps “he doth prostesteth to much”
Cheers Wayne
I finally recieved a reply from Neil Jenman.
This is the basis of his reply:
“It is not possible to make an unethical system ethical. This is the problem of wraps. Many consumer advocates oppose them and, as you may know, several states are now looking into them. Warnings are being issued in WA, SA, ACT and Tasmania.”He also directed me to this link:
http://www.jenman.com/NewsNews1.php?id=120An excerpt:
There is one question that every wrapper, or supporter of wrapping, always seems to sidestep. It is a question that goes to the heart of the wrapping debate. The answer to this question effectively destroys any argument in support of wrapping. At least, on ethical grounds.The question is this: What happens to the buyers (the wrappees) if the investor (the wrappers) fail to pay the lender on the ‘head’ loan held by the investor?
The answer is that the buyers lose what they thought was their family home. Plus their deposit. Plus all their payments. Plus any money spent improving their home.
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This is a valid concern and one that should be adequately adressed to ensure the future of the wrapping process; otherwise the regulators will step in and ruin it for everybody.
Cheers
WayneThis is an important question.
I always tell my buyers that at any time I am happy to produce the loan statements I receive for the underlying mortgage, to show that repayments are being made.
I don’t know how you’d go about enshrining that in law though!Keep smiling
Felicity
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