Glancing through the latest Allsop property auction catalogue, my interest was piqued when I saw a modern three bedroom house with a guide price of just £80k. As the sun was shining I decided to pootle over to Suffolk to take a look.
Now, while I could tell from the photo the property was modern, what I didn’t expect was to find myself on a brand new housing estate. Yes, despite my disbelief in the sat nav (although it’s very rare my Tom is ever wrong) the property which was up for auction was in fact on a brand new Taylor Wimpey housing estate.
Now, I have to say that is pretty unusual when it comes to auction properties. Council estates are par for the course – but new builds – nope they’re not really the usual stuff of auctions.
Given the property is located in a Suffolk village, in the middle of what would appear to be a very nice modern housing estate, I was therefore rather taken aback by the shuttered up windows and doors. As I am sure the neighbours must have been when they woke to this sight.
Now shuttered up properties are de rigueur in many central London places for fear of squatters – but here in rural Suffolk?
Well, I have to admit I then found myself pondering just how bad an area it was for such drastic security measure to be taken. Maybe I had been taken in by the sleepy, suburban surroundings and actually this area was in fact smack-head central?
I noted the neighbourhood watch stickers and pondered some more….unless it was a swinging centre gone wrong?
Anyway, all ponderings on the criminal, intimate and otherwise unintentional going-ons of the neighbours were put to one side as I made my way into the property. As you would hope (although not expect – this is an auction property after all!) the property was modern and in almost move-in condition save some cosmetic improvements.
But it was in the lounge where I really got confused.
Perched centrally in the space, and in such a fashion that the home-owners could not yet afford a sofa, were two canvas chairs. Next to them was an electric halogen heater. On the window sill was a small flat screen TV. To the other side of the room was a cage. And a distinct pong of dog.
Hmmm. ‘That is odd’ I mused to myself. However, I didn’t. I actually said that out loud and in a rather more accusatory tone than what I had intended. And I did that to the auction viewer:
“I don’t get it” I said to the viewer, nodding my head towards the lounge furniture: “Why are there two chairs there, an electric heater and a cage for a dog. What is going on at this property?”
Fortunately I stopped my question there and didn’t mention my previous ponderings on the drugs cartel and out-of-control swingers’ parties which I had been conjuring up.
Sagely he turned to me, as if letting me in on a secret:
“It’s security” he replied. “They have around-the-clock security here with men and dogs”.
My eyebrows shot up. Good God, had I been right? Really was this property the operational heart of Columbia’s finest?
Before I could ask any further questions, my face must have given the game away that I was onto something…
I leaned in closer ready to listen very carefully. I could feel my mouth salivate and my ears tingle as I waited for the tales of debauchery to unfold.
“It’s a void mortgage” he proclaimed.
“What” I took a step back as if he was about to punch me. I looked at him quizzically as though he had just asked me my name in Mandarin.
“I don’t really know enough about it to tell you more, but the security is because of this void mortgage company”.
Hmmm. I nodded at him.
“But what is a void mortgage company?” I enquired while still nodding at his not-knowing-ness and my pretence that I knew what he was talking about.
“I don’t really know, I’ve heard they’ve got some videos on YouTube but I don’t know any more”.
Several hours later…
I think it’s a plotline that would’ve even challenged Dan Brown, which is why I find myself really quite befuddled. If I follow the plot correctly:
The banks have conspired to create fake money out of thin air which they have forced us to fraudulently borrow by using our signatures on promissory notes via power of attorney authority which many of us never knew we had given them. In return the banks charge us interest for borrowing this fraudulent money they never had, but which we now have (I think) and which we owe. But actually, we shouldn’t owe because the mortgage is void.
And I know this may all sound a bit far-fetched – but let me tell you this – there’s something not right. Because that level of security at that type of property in that type of location just ain’t right.
Answers on a horses-head postcard anyone?
PropertyCycles
Very Interesting Sam. I will be interested to hear the outcome.
Sam
Thanks. I would love to know more about this ‘void mortgage’ situation.
Lee Jones
Intriguing, I would be interested to find out what happens. I bet it pleased the neighbours with the metal shutters!! We are looking round to purchase another property and came across your site while looking for advice.
Sam
Thanks it’s unusual isn’t it. The neighbours must be appalled – this really isn’t the sort of place for this level of security! Did you find the other property you were after?
WhatSamSawToday
Is Void Mortgage A New Dan Brown Novel? http://t.co/WdzsVYGTjt #mortgage #property
JohnnyDebt
RT @WhatSamSawToday: Is Void Mortgage A New Dan Brown Novel? http://t.co/WdzsVYGTjt #mortgage #property
Kevin
Sam, hope you are well.
Gritty subject this, not one that gets talked about very often. Having wondered what caused the recession I started to research monetary history and how the system works.
There have been cases of void mortgage cases in the US where people have succeeded but first I have heard of UK case, very sensitive indeed.
Central banks do not create broad money supply which is the common belief, they print hard currency (notes / coins) and sell reserve currency to main stream lenders. The reserve currency is used to balance bank sheets at the close of business each day (often referred too as overnight money).
Mainstream banks actually create money in the form of loans, this is how money enters our economy. They create the loan as an asset on their balance sheet offset by the deposit into a customers account as a liability. In effect it is created out of thin air.
Banks currently have to meet capital requirements, so they have to hold a certain amount of capital in relation to the size of their loan book. This is a form of fractional reserve banking which was used until a few decades ago, the ratio used to be 10:1 but once the brakes were released, well we have all seen the results first hand.
This is why banks fear bank runs and also why capital controls are required, fact is the banks don’t have that much money in reserves so if everyone tried to withdraw at once the bank would collapse. Years ago legal tender was redeemable in gold (gold standard) but these days legal tender isn’t backed by anything.
There’s a lot more too it but hope this gives an overview, it’s just how are financial system works and whether it is right or not is debatable.
Sam
Kevin thanks for taking the time to share this. I am interested to hear there has been some success in the USA. The whole system really is something to get your head around (!) I wonder if void mortgages will be something which we start to hear more about – perhaps when interest rate rises?
Richard Watters
Fascinating stuff. I found a couple of videos which explain more:
http://www.youtube.com/watch?v=ONB2gfnfHdk
and
http://www.youtube.com/watch?v=ONB2gfnfHdk
(and there are more after the above in this series).
Still don’t understand why all the security measures on the Suffolk property though. The property is for sale by the mortgagee so looks luke a standard repossession.
Sam
Thanks Richard, yes I had seen some of the White Rabbit vids.
It is a repossession and by all accounts this should be standard without the need for such security. This is why I can’t help but wonder if there is something more going on with this talk of ‘void mortgage’. I do not know enough about this – but what I do know – is that this level of security at a property like this is very rare…
Star
LOVE your OOTD with the purple top. Abulostely adorable! What color are your nails? Is it a dark purple? I can't quite tell. I really like it though!And don't worry about dumb people with ridiculous comments! They have no idea what they are talking about! Their life= major fail=]
Buyer Beware: How Google Can Uncover Surprising Property Secrets
[…] will tell what happens next. However, it seems the little-known topic of Void Mortgages could be gaining […]