attack on wrappers

[NigelW]

Here's an extract from a newsfeed I receive. I've pasted in the links to fact sheet and media release below. Maybe the Vendor Finance association should issue a formal response???

Most of the points made in the fact sheet are quite easily refuted - the situation is exactly the same or close enough to it when borrowing from a "reputable" bank.

Vendor Finance Warnings
The New South Wales Fair Trading Minister Reba Meagher has announced the publication of a new fact sheet (5 April 2004) on vendor finance. Ms Meagher said that vendor finance agreements, or "wrap" mortgage agreements, are often a scam, and result in people losing not only the home they are trying to pay off but also all of their repayments, including interest. The agreements usually arise when purchasers are unable to obtain finance through traditional lenders, and the vendor offers them an agreement whereby they pay off the purchase price, plus interest, in installments. However, the vendor can renege on these agreements at any time and onsell the property, leaving the purchaser with nothing. According to Ms Meagher, the new fact sheet warns prospective purchasers of the risks involved in entering into these agreements.
Media release (5 April 2004)
Source: Office of Fair Trading

http://www.fairtrading.nsw.gov.au/c...05meagherlaunchesthefactsonvendorfinance.html

http://www.fairtrading.nsw.gov.au/pdfs/corporate/publications/ftr36.pdf

 

[Lissy]

All I can say is that if Ms Meagher honestly believes that a wrapper can "renege on these agreements at any time and onsell the property, leaving the purchaser with nothing" then she should go talk to a lawyer about a standard terms contract.
This sort of ill informed comment from someone you would expect to know at least the basics of a standard vendor terms contract makes me extremely angry and disappointed.
Reading it again, though, it's hard to determine whether Ms Meagher actually said that, or it's journalistic licence.

 

[Aceyducey]

MICHAEL!

This is when you issue a response!!!!

And get a meeting with the lady - she needs an education.

Lissy,

As this is a PRESS RELEASE there is no journalistic license. These are the official views of the Department.

And it demonstrates that the NSW Office of Fair Trading has not been adequately educated on what wraps are.

Cheers,

Aceyducey