On August 14, 2013 By Karl Deeter In mortgagesWith 2 CommentsTags: are mortgages now called lines of credit, loan offers don't use the word mortgage More on pseudo-scientific-legalese from Kilkenny
This is a sham, plain and simple. The trust will fail because one of the certainties, the trust property, is missing. The Trustee does not have valid title to the property and thus, the trust fails. As Karl has said, you cannot transfer assets into a trust to defeat creditors and you cannot transfer a property where the bank has a charge on it without the bank’s consent. Please people, do not give these guys your money, this will not work.
I’ll start by saying I have no connection with the trust and I’m not a distressed mortgage holder and I’m not in the financial industry.
So, Jeremy, I take your point and you are right…. BUT… what about if they somehow can prove that the mortgage/lien was invalid in the first place. That would invalidate your position on the “scheme”.
The obvious rebuttal to that is, well then just prove that the mortgage/lien is invalid and have your debt right-off and no need for the trust!
Maybe the idea is that they need enough €250’s to take this thing to court and win it. The small guy on the street with a distressed €200k mortgage isnt going to have the dosh to do it. Defending in numbers is easier than standing alone.
And then again, maybe it is all just a scam(and it does smell that way). What does seem reasonable to me though is that the people who are putting in “their” assets have nothing to lose (other than the €250) and have everything to gain…. on balance, its probably worth a gamble, when they have no other choices other than give into the bank.