Help! Mortgage application fraud

[Mumsnut]

My lovely cleaner turned up today in tears. She has had a live-in boyfriend for the past 10 years who is a lazy, unprincipled swine, basically. Last year she finally threw him out. She pays the mortgage on her house, it has always been in her name only.

She has started receiving bailiffs' visits and threatening correspondence. It turns out he has bought a house and already defaulted on the mortgage; it has been repossessed and auctioned. But it turns out he forged her name on the application forms (having no decent credit record of his own) and the mortgage company is now coming after her for the shortfall in the auction proceeds over the mortgage debt.

She knew nothing about this property. Her boyfriend's cousin is a mortgage broker and has handled all the paperwork - surely he shouldn't have just taken the boyfriend's word for it that she was involved and happy to be jointly liable??

shit!
CAB?
solicitor free session?

there is a lovley mumsnetter called mumblechum who may be able to advise

another called orinocco - she too maybe able to advice - if you give a call out

OMG. Agree with Custy, she needs legal advice. Can the mortage company provide a copy of the original agreement so she can demonstrate the signature isn't hers?

I'm pretty sure that they will be able to prove that the signature is not hers. I would agree she needs a solicitor, and maybe even to call the police too.

She is going to CAB today. I hope the mortgage company will see reason. But I suspect they'd rather put the burden of proof on her and she simply hasn't the money to take this through the courts if they press it. It would be easier to give them some money, and I bet they know it.

Surely its a matter for the police as well? It's a fairly serious crime to forge someone's signature on a mortgage, and they will help her for free.

If he comitted fruad I can't see how she's liable. I would call the police and report him making the mortgage complany aware of the police being involved. I can't see how she would be liable at all in these circumstances. If it is her name they supposedly think it is on the form data protection will mean they will be able to send her a copy.

There is a young lad to to consider. She just doesn't (rightly or wrongly) want him to know what his dad has done or see him in prison. However, i dare say the mortgage company will take that step.

I think it possible that the mortgage broker is involved as well. He handled her own mortgage and so has all her details on the original forms. She has deliberately kept her bank and card details secret from her boyfriend since he started 'borrowing' her card - she brings EVERYTHING to work with her, so it would be difficult for him to get the info otherwise.

Young lad or not, her bf faces criminal proceedings or she loses the house. TBH it all sounds very dodgey. I would not consider not reporting someone who committed me to a £100,000 debt and the threat of losing my home.

i would call the police if my dh did it- i wouldnt lose my current home over some complte tosser

I hope she will see reason.

i think she must report it to the police if she wants to be believed by the mortgage co or the civil courts, if they take it there. She doesn't have to press charges, but she will not seem credible if she alleges it was forged but hasn't reported it.

she could be bankrupted by this

it seems very likely the mortgage broker is involved, and she should say this to the police as well.
where were the documents sent relating to the repossession? how did she not find out before?

She should contact the mortgage company and ask for a copy of all mortgage documentation. Once she has this, she should seek legal advice. She must also report it to the police, regardless of her ds. She must tell the mortgage company that she knows nothing of this property or the mortgage and ask them for details of the person who completed the mortgage forms and whether they are stating that they witnessed her signature. She knows it's the cousin, but the mortgage company can investigate further.

Also she should ask for the details of the solicitors who acted on the purchase, as they will have acted on behalf of the mortgage company too (in most cases). It would be extremely unprofessional of a solicitor to act for a client without ever meeting them or being satisfied that they are who they say they are, viz. money laundering regulations.

This is dreadful she should report it to the police asap and get it documented and then take legal advice.Poor thing what a ***

I suspect that all such signatures should be witnessed by the broker.

This is all good advice ladies. Please keep it coming.

Aren't mortgage deeds usually witnessed by 'independent' third parties? Whoever acted as witness could also be guilty of fraud too I would think?

Is there any more news on this? Has she found out how this house was purchased in her name without any of the professionals ever meeting her??

She should contact the FSA and also request all relevant documentation from mortgage broker. If she puts in a complsint against the broker the complsint will have to be investigated within a very short time span.

The mortgage company are being very co-operative, actually. It looks like this can be sorted out so that she isn't chased for money, and they will dob the bf in.

She is certainly much happier! Thanks to all who advised.