Borrowers off the hook

Author: John Loughnan, Kathryn Halyburton, Skye Morrison

Publish Date: November 23, 2009

The Supreme Court has recently decided against the lending bank seeking to sell home properties for default of payment. A finance broker was found to be the agent of the bank and had acted fraudulently.

The borrowers, who admitted to not carefully checking the documents, put their homes on the line for a development which failed. They needed and relied on the venture being successful for repayment of the loans. The court held that the mortgages were unjust and declared them void. The particular circumstances of the case determined this result.

Borrowers should not however relax because of the decision. It remains important to always exercise caution and to know exactly what is being arranged, what security is required and if willing and able to take the risks involved in the venture.

If you require any further information please contact John Loughnan on 4907 6325, Kathryn Halyburton on 4907 6314 or Skye Morrison on 4907 6330.

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