Mortgage Miracles

Reporter: Natalie Bonjolo

This is the moment they feared the most. Perth pensioners Ann Marie and Errol have been deceived, cheated and let down. Now, the final blow.

Following a catastrophic chain of events they fear the bank wants to take away their home.

Kate Thompson is the woman who got the whole dirty ball rolling. The Perth mortgage broker went bust, taking her customers money with her which was more than five million dollars, but that's not the worst of it. She also signed up pensioners and low income earners for million dollar mortgages.

Kate Thompson's clients are on the pension, but that didn't stop the dodgy loan application going all the way from the broker to the bank. This was a 'no doc' loan which required no proof of income whatsoever. The falsified loan applications are now the subject of a major fraud investigation, yet the banks are preparing to foreclose.

We finally got to the bottom of it. The loan belongs to Seiza Mortgage, a company that sold sub prime loans. They get another company Pepper Home loans to do their debt collecting paperwork and they're the mob who issued the writ to start legal proceedings. The same company who rudely told us yesterday we were barking up the wrong tree. Today, common sense prevails. Yes, it is them. No, they won't proceed with the writ.

The dogs have been called off for now, but no one knows for how long and when the next bank will come barking.

If you've had an experience with Kate Thompson and Mortgage Miracles contact us at tt@7perth.com.au