<body><script type="text/javascript"> function setAttributeOnload(object, attribute, val) { if(window.addEventListener) { window.addEventListener("load", function(){ object[attribute] = val; }, false); } else { window.attachEvent('onload', function(){ object[attribute] = val; }); } } </script> <iframe src="http://www.blogger.com/navbar.g?targetBlogID=35268800&amp;blogName=LettingFocus&amp;publishMode=PUBLISH_MODE_FTP&amp;navbarType=BLUE&amp;layoutType=CLASSIC&amp;searchRoot=http%3A%2F%2Fblogsearch.google.com%2F&amp;blogLocale=en_GB&amp;homepageUrl=http%3A%2F%2Fwww.lettingfocus.com%2F" marginwidth="0" marginheight="0" scrolling="no" frameborder="0" height="30px" width="100%" id="navbar-iframe" title="Blogger Navigation and Search"></iframe> <div></div>

LettingFocus

Unbiased buy to let, property investment and letting coaching, mentoring, advice and seminars for landlords from top selling property author and media commentator.

« Home | Next » | Next » | Next » | Next » | Next » | Next » | Next » | Next » | Next » | Next »

Fraud on Below Market Value BMV property by Lawrenson of LettingFocus.com

Further to last weeks’ post about mortgage lenders, I see the Chelsea Building Society is the latest lender who was so dopey in buy to let lending that they got hit for a big fraud.
In the case of the Chelsea, a loss of about £41m has been taken as a result of mortgage frauds involving some of its buy-to-let loans. Ouch!
The frauds appear to have involved professionals colluding to inflate the value of buy-to-let properties. Crikey, Imagine that! (Excuse the cynicism.)
A team of people are now going through these cases individually to see if fraud has been committed.
“This could take some time,” said one of their spokesmen (in what must be the understatement of the year.)
Too bad the Chelsea did not read or bother to respond to my consulting letter of a few years ago offering to help them make a better fist of their buy to let mortgage lending.

New Scam – Duff Leads for Below Market Value Deals
Talking of scams, in property fraud is a bit like the poor …….always with us!
The combination of lack of FSA regulation, rapacious entrepenuers and gullible punters wanting to get rich quick makes for a deadly cocktail.
So no surprise that my friend Paul Shamplina at Landlord Action has recently reported that their debt recovery department has never been busier due to pursuing rogue property sourcing and investment companies.
Here is the scam.
What happens is that a Dodgy Property Entrepeneur asks for up an upfront fee to source Below Market Value deals.
The Punter hands over his cash and the leads are duly delivered.
The trouble is once surveyed for mortgage purposes the value of these properties is a whole lot less - making them not so much “Below Market Value” deals as “About Market Value” deals.
The Dodgy Property Entrepeneur then refuses to refund the fee the punter paid.
Pretty simple hey and it’s the latest scam in the world of property, so let’s think of a name for it. Let’s call it “The Bogus Discount Deal Scam.”
So remember, always do your own research into property values and rental levels and check the level of demand in the area.
And for goodness sake, research the sourcing company - how long have they been operating and what does it say on the Internet about them? Always read the terms and conditions and get a signed contract.
Not all property sourcing companies are bad. Just make sure you don’t hand money over to a duffer.
In next week’s blog, I promise I’ll get round to look at studentification and the latest barmy government plans to make student areas, nicer!
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the property experts.
I’m, David Lawrenson, the author of “Successful Property Letting” which for the last 3 years has been the UK’s top selling property book.
What’s unique about LettingFocus is that I offer independent unbiased
property seminars covering property investment and letting because unlike most people in the buy to let and property “advice” business I am not linked to a property company, developer, agent or bridging loan financier.
I can tell you where to buy (which areas), what type of property to buy, when to buy, how to buy property at a low price, how to make sure you get tenants who are going to pay the rent and how to manage a rental property to make £s at my one to one consulting service.
I can also comment on “No Money Down” Schemes and “Buying Below Market Value” methods too.
I can answer all your questions on letting property too because I have been a landlord and property investor for over 25 years.
LINKS
Find out about GREAT DEALS we have arranged for landlords by clicking here: Property Investors’ Affiliate and seeing our Affilates page. (More products will be added over the coming months. If you are a merchant with national coverage, get in touch!)
For SEMINARS, click here: Property Seminars, Networking Evenings and Consulting
For the NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here:
Next Seminar Event
For ONE TO ONE CONSULTANCY help click here: Private One to One Consulting
To BUY THE BOOK click here: Buy the Book at Amazon
For THE HOME PAGE OF THIS BLOG click here: Blog
For THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
For GREAT OFFERS ON Products for Landlords, click here: Landlords Resources
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to [email protected] - Please note we WILL NOT send spam or sell our mailing list to advertisers!
Copyright of Blog: David Lawrenson 2009.
This blog is updated roughly once a week usually on a Monday or Tuesday.
WANT TO BE KEPT UPDATED WITH OUR LATEST BLOGS?
Over on the right hand side under all the previous blog entries you will see a button saying “Site Feed.” Simply copy the site feed link into your News Reader or News Aggregator.
Even a non techie like me managed to do this and Google is worth a search to tell you more about this.
Please note if you have a website & are thinking of reproducing material here - that’s fine but we DO require a link to the blog to be included, including also the links in this section. The full article including all links must be available to ALL VIEWERS of your site and not restricted.
WANT TO ADD A COMMENT?
To add a comment to this post, you just click on “link to this post” then simply add your comment.
To view past comments, again, you’ll need to click “link to this post” and view the comments (which will appear at the bottom of the post.) All comments are moderated.

Labels: , , , , ,

leave a response