Firstly, I'm not going to go into the issue of the property sector, property bubbles etc, only the statement made in your thread...thread link below along with excerpt from same.....and yes I did read the articles and watch the vids.
https://www.silverstackers.com/foru...r-want-to-be-you-really-must-read-this.93507/
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EVERYONE WITH A CURRENT MORTGAGE ... NEEDS TO READ BELOW !!
Go into your bank and ask for your LAF ... Loan Application Form ... that you signed ... they might tell you to naff off ... but come back at them, with a FOIA Freedom of Information Act application ... and they must hand it over.
If they don't have it ... the mortgage and loan application have been separated ... so you can ask for your home loan to be cancelled, anyway.
And if they do provide it ... there is a damn good chance, that you will pick up something fraudulent on the loan application (especially Low Doc Loans) ... as many of them "upgraded" your wages earnings, job title, inflated assets, investments, secondary signature, etc. without your knowledge or consent ... to get the loan passed easier ... (just so they could get their commission)
When you find the discrepancies (aka FRAUD) make an appointment to see the manager ... and tell him you would like him to cancel your loan due to fraud committed by the Mortgage Broker / Bank Employee. If the Manager, dares try to say "No" (as a bluff) ... repeat yourself LOUDER ... so all the other customers can hear ... he will soon usher you into a private quiet office.
The loan will be cancelled and the house is yours scot-free ... there were a few landmark cases that went through court ... and they don't want a stampede ... so they keep it hush, hush ... and just cancel the home loans of the people ... who call them out as Bankster Fraudster's.
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I do not dispute that some level of data / information manipulation or misrepresentation may / does occur in mortgage lending and possibly for the reasons you have outlined in your posts...re broker / banker wants their commission or bonus. I do not condone such practices.
Where I do refute your claim is that you have not considered the concept of "financial hardship" occurring as a result of the loan being made or the ability of the borrower/s to service the loan.
When a borrower commences a dispute process with a bank / lender there are processes for review of such within a bank and if not resolved to the borrowers (customers) satisfaction, they can then take their dispute to the "Financial Ombudsman Service Australia" (FOS) who will review, mediate and rule on such disputes.
In this regard, where you have made the statement (bolded in
red above), re finding a discrepancy in your loan doc's ...get a free house. Simply finding a discrepancy in your loan doc's does not qualify for a cancelling of the mortgage and a "free house". If the borrower/s have benefited from a mortgage (or other form of loan), and have the ability to service the loan, FOS will not rule in the borrowers favour and cancel the mortgage or part thereof.
If someone is suffering financial hardship or ruin due to discrepancies made in the loan application without the borrowers approval / knowledge then FOS will take a different approach which may reduce mortgage value, cancel interest and fees payable, but mortgage principle remains or cancel the mortgage in fulll.
I refer to the following pages from FOS which outline lending conduct and maladministration and the second link which lists case studies which cover the issue you raise along with FOS's ruling.
https://www.fos.org.au/the-circular...ending-conduct-obligations-maladministration/
https://www.fos.org.au/resolving-disputes/case-studies/#Banking & Finance Case Studies Index
NSW Legal Aid also has some words on same. Refer to bottom of the page linked below.
https://www.legalaid.nsw.gov.au/pub...-or-mortgage-broker-has-done-something-unfair
In short, finding a discrepancy in your loan doc's does not open up a free for all for those affected to have their loans cancelled. Financial hardship incurred by taking on and repaying the loan has to be demonstrated. Whilst something improper may have taken place when the loan doc's where being prepared, if you have benefited, stand to benefit and / or can service the loan, FOS will not tell the bank to cancel the loan / reduce or change to not charge interest etc.
If your position was correct, every lawyer in Australia would have been onto it by now and no lawyer would have a mortgage nor probably be able to get one as a result. Simply finding what could be considered fraud in mortgage / loan doc's will not result in someone getting a free house / reduce financial obligation unless hardship can be shown.
I suspect (as no case evidence has been produced to back your claim) that any mediation between a borrower and bank that resulted in a commercial settlement where the mortgage was cancelled, reduced in value had circumstances where financial hardship had / would occur and the mortgage value was less than the bad PR and fall into those case studies as noted by FOS.
If you can find evidence of someone who pays their mortgage / loan on time, and then found an error / fraud on their mortgage application and then got their mortgage / loan cancelled based on the premise you have noted, then provide same.
Until such time, your statement is incorrect and the links to Aust / NSW Govt depts show that.