Home Rescue or big rip-off? 

Published: 5:55PM Wednesday October 07, 2009

By Gordon Harcourt

Source: Fair Go

Home Rescue or big rip-off? (Source: Fair Go)

Source: Fair Go

Home Rescue is a Hamilton based outfit which claims to prevent mortgagee sale. It can't - even its spokesman admits "it doesn't work". In return for a service which doesn't work, some people have paid thousands of dollars. No homes have been rescued. Home Rescue can't or won't produce a single case where a mortgagee sale has actually been prevented.

Thousands of dollars for nothing

The most disturbing thing about this story is the money which has gone for nothing. Clients are persuaded to sign up, stop paying their mortgage, and start paying Home Rescue. They claim the money went on "office expenses". It certainly didn't go toward paying mortgages.

The Home Rescue website - now down - used to say "for a small fee, your obligation to pay the Mortgage is then nullified". It wasn't small fee, and the obligation wasn't nullified.

Barbara Charnley from Auckland's North Shore is 86 years old. She got in money trouble after a loan for which she was guarantor went sour. But instead of talking to her family and her bank, she was advised to talk to Home Rescue. She joined up, stopped paying the mortgage, and started paying Home Rescue $200 per week. In all, her family say she paid out $4600. Unsurprisingly, her bank was going to sell her up, but by chance her daughter found out, and the family was able to save the house.

Mrs Charnley is the lucky one. A Manurewa couple told me they paid out about $8000. They lost their home. A Coromandel woman told me Home Rescue contacted her, persuaded her to sign up, and she paid them $17,000! She now accepts that was a very stupid thing to do, but it's too late. She is going to lose SIX homes, and will probably be bankrupted.

"Mortgages fraudulent"

Home Rescue argue that "mortgages are fraudulent", using everything from the Foreshore and Seabed Act to the Magna Carta. When it was running, the Home Rescue website was full of legalese nonsense. What they argue might have some interest for academic lawyers, but when it comes to preventing mortgagee sales, it is complete rubbish. It just doesn't work - I've talked to the lawyers, the banks, the people who lost their homes. And I've seen it fail in court.

Arguments have "no legal weight"

A couple of weeks back I got a tipoff Home Rescue would be appearing in the High Court at Auckland. I went along, but Home Rescue didn't. Instead, I witnessed the pathetic spectacle of a couple trying to save their South Auckland lifestyle block, by arguing the matter should be heard under Maori customary law. Home Rescue didn't turn up, and they didn't file legal documents as promised, but it would have made no difference. The judge would have blown them out of the water. Here's a taste of what he said about their arguments, had they been there to make them: "Hopeless ... will not be recognised ... not a defence that's going to run ... tilting at windmills ... these legal grounds have absolutely no weight at all."

The couple will likely lose their home.

Commerce Commission warning

The Commission has been investigating Home Rescue, and in June it sent a warning letter, saying:

- it cannot prevent mortgagee sales or foreclosures

- it risks breaching the Fair Trading Act with its claims

- its claims "may further exacerbate the vulnerable financial and emotional position of people facing mortgagee auction"

Brendon Holmes

The bloke who has been fronting for Home Rescue is Brendon James Holmes. He's a failed internet entrepeneur and current bankrupt. He lives at the same address which Home Rescue lists as its base. It's a semi rural property just north of Hamilton, and is, or was, also the base for the United Tribes of New Zealand, a Maori sovereignty organisation.

I'd had a couple of phone conversations with him, but he stopped taking my calls, so eventually I went to Hamilton to try and meet him.

He wasn't at home when I first visited, so I went back. Soon after I arrived, so did he in a sporty Subaru. He clearly wasn't keen to see me, because he drove across his sloping wet lawn, then sped off up the road at considerable speed.

But as I drove away, my phone rang. It was Brendon.

He claims to have left Home Rescue, and that he was just "piggy in the middle". Unfortunately, the many documents I have strongly indicate that is not true.

He was dismissive when I asked where all the money went, claiming it was for "office expenses". However, under pressure he admitted that "it doesn't work", though he claims that is because "they" - the legal system - refuse to pay it proper attention.

The only thing he could claim is "a hell of a lot of stalling".

DO NOT USE HOME RESCUE

Our advice is obvious. Don't use Home Rescue. Don't pay them any money. Don't let them put a caveat on your house. Don't sign any of their documents. It's only going to make things worse. It will add legal costs, it might scare off possible buyers, and that means a lower sale price and more debt for the person who got sold up.

Talk to your lender, and fast

Talk to your family, but most importantly talk to your lender. And do it as early as possible. It might not seem like it, but mortgagee sale is a last resort. Banks and lenders don't want to do it, because it's likely to cost them money. They'd much rather have someone who is still paying them money, and they will negotiate.

Free, confidential, expert advice

And if you're in trouble with the mortgage, there is a great source of free advice and help. Call the Family Budgeting people.

If you are in trouble paying a mortgage or even think there may be trouble around the corner you must talk to your mortgage provider straight away. It is best to do this before you get behind. The bank doesn't want to take your house they want to help you find a solution that is good for everyone.

If you need assistance you can contact a budget adviser who will help you assess your overall situation and negotiate with creditors on your behalf to reach a manageable plan. Call 0508 BUDGET (0508 283438) to access free, totally confidential budgeting advice.

Police investigation

The Commerce Commission has now closed its investigation, and handed the file to the police. We understand an investigation is under way. Fair Go wants to hear from you if you have any information about Home Rescue.


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Add a Comment:

AndyL ; 2010-03-20 @ 19:35 NZDT
Has anyone on Auckland's North Shore had the same problems with Booysens Computers in Rothesay Bay ? We have taken the PC into them twice with the same problem, been charged twice and still have the same problem.
cturnbu2 ; 2010-03-12 @ 11:38 NZDT
The new design for Unilevers range of deodorants is a crafty ripoff. They have not reduced the amount of product or raised the price. They have turned it upside down. As you use it air comes into the bottle to replace the deodorant coming out. Stored upside down the deodorant seals around the ball stopping any more air movement. As the temperature rises during the day the air expands forcing the deodorant to leak. Result- Less usable product for your money.
bfsaw ; 2010-03-09 @ 09:22 NZDT
Car hire beware -Stay with mainstream car rentals and don't get caught out as we did while in ChCh.Small dealer next to camping ground failed to note exsisting damage on vehicle and 3 days after we had dropped it off at airport says it has been side swiped while on hire to us ! He has our credit card details and we now feel like 'sitting ducks'
bjack ; 2010-03-17 @ 11:36 NZDT
Watch out for "mainstream" car rental companies too. Europcar Australia have just scammed me for $429 for an imaginary 35 mm crease. They won't check the car until after you leave at Adelaide Airport even when asked to. They sent a photo of the car taken 3 days later with no mark, and won't explain why the $274 cost on the incident report has become AUD$325.75 which is coincidentally just under the $330 excess for the cover I had. This is a scam on tourists.
manmor11 ; 2010-03-08 @ 12:06 NZDT
Has anyone had any issues with a company called Drybuild? My mother and a vendor spent $3900 on a leaky home report from this company which indiacted that the property was leaky and had a significant amount of repairs required which Drybuild could arrage themselves but after a second opinion we found the repairs inicated were not required and the house has insignificant leaks. We have heard similar stories from other people about the same company in question.
nikkib90 ; 2010-03-08 @ 09:10 NZDT
Has anyone else had problems with NZsale.co.nz ? I have been waiting over a month for a refund and to date it has not happened, although they said it had. Now they are not responding to any emails and there seems to be no other way to contact them. Just wondering if anyone else is in the same boat or knows how I can go about getting my refund.
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