Comment by arree Saturday, 22 March 2014 ยท

OK, who else out there paid over inflated prices on their blocks of land back in the day and are now trapped in a jumbo loan, and now 5 or so years later are facing the prospect of being financially crippled by your bank.

Banks threw money at us based on those inflated valuations, (in house assessors would tweak these valuations even higher to ensure the deal would fit THEIR LVR ratios) with no regard to our ability to repay these loans.. LOC, buffer moneys, refinancing all done to skew the statistics... no systemic issues "they say" ... everything is fine........ all lies, lies, lies. ASIC knows it, APRA knows it, the AFP knows it, and now thanks to BFCSA we know it too!

Hard working Aussies have been conned out of their life's hard work. This mortgage scam is a huge scandal and the sooner our Lower House politicians realise it and get rid of ASIC as a Consumer protector and start using the Laws already in place to jail these banksters and force the banks to give us back the houses and money they stole by their fraudulent actions the better!

For example in my area in Northern NSW a beach front vacant block of land in 2007 sold for $2,700,000 according to ...yet the RECENT ReSale was $710,000

People are stuck with jumbo mortgages, paying banks hundreds of thousands of dollars in interest (interest only loans) until they can't take it anymore... nothing is coming off the principal as it is interest only for 5 years, the buffer money to afford the repayments has run out, the credit cards are maxed out.. and after fighting to save our homes, our savings, people face the prospect of losing everything when they should be looking forward to a comfortable retirement.... Many of us now face losing (or have already) our homes, our health, marriage and hard earned money and life's savings....... all because the Banks conned us into believing we could afford these loans...... Any prudent lender would have rejected our applications on the spot. This is criminal and evil. Banks manipulate the housing bubbles.. and get ready for the bubble to burst when the interest rates climb again next year as Westpac economist has declared.