Alleged mortgage fraud victims could face repossessions

Wed, 01 Feb 2012

Individuals believed to have suffered at the hands of a suspected mortgage fraud are facing the threat of repossession.

The alleged victims lost their appeal against a High Court ruling and may now be forced out of their homes as a result, Mortgage Strategy reports.

Four cases were turned away by the Court Appeal from people who had entered agreements with North East Property Buyers (NEPB) - a company now being investigated by Northumbria Police for alleged fraud.

As part of the agreements, the firm bought the properties and allowed borrowers to stay in the dwellings as residents, with many tenants claiming they were assured of remaining in the accommodation for life, on condition that they complied with the tenancy terms.

Mortgages were then taken out by NEPB, which counts Speedy Property Buyers as a sister company, with a number of lenders - but then failed to repay what they owed.

One of the residents affected by the court decision stated they believed the court "would have ruled in favour of the tenants and allowed us to stay in our home and pay rent to the mortgage company - but that's not going to happen".

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