Hi Commander you are welcome. I guy was going to invest in my website and knows people all through the investment world. he used to run a bond room and was head of structured products for a major international bank.
I am trying to verify now via a client who is an investment adviser - on clauses in the mortgage contracts. I was told by the almost investor that these contract have a top up clause so that if the property goes into negative equity a margin call can be made.
It gets worse and again - have to verify again before I am certain - the mortgage insurance contracts have a clause that they are not liable on default if the property is in neg equity. Another investment adviser client at another stage told me this is all true - in fact he was the one that originated that the insurance is set up this way.
Can see it now if this it true we are going to see a major poo fight because the banks will not even realize this. We don't read their (banks) contracts in depth and don't think they read all the fine print in insurance contracts! Bankers are not lawyers.
Can anybody that has actual data on this verify please as I want to be sure on this before I get too alarmed. If its true I am starting a fund to run after my gold fund :-) What an opportunity!
DYOR and don't believe me I have not see these clauses myself it only came from sources I believe to be reliable.
