Who Is Taking Advantage Of Distressed Borrowers?

The High Court has recently expressed concern that distressed borrowers are being duped into paying money to the anonymous promoters of schemes, which purport to protect them from enforcement by lenders but are actually 'utterly misguided and spurious'.

There are a number of schemes being promoted at the moment that supposedly protect borrowers in arrears from enforcement by their lender.

How these schemes supposedly work varies: in some, the mortgage is purportedly transferred to a third party, in others the borrower's interest in the property is purportedly transferred to a trust.

The common thread is that none of these schemes that have come before the courts work, except perhaps to delay enforcement and increase legal costs.