The Bartles want to dump mortgages. Photo / Martin Sykes
A retired Whangarei couple fighting to be released from $629,000 in mortgages after the Blue Chip collapse signed loan documents describing them as "self-employed investors".
Bruce and Judy Bartle say documents were changed to qualify them for the loans, when in reality their only income was national superannuation.
The
mortgages - over their Whangarei home and an investment apartment in Symonds St, Auckland - were taken out as part of a so-called joint venture they invested in with Blue Chip in 2006.
They say they would never have signed a Tasman Mortgages declaration for a "fast doc" loan with the "self-employed investor" description on it.
But under cross examination in the High Court yesterday Judy Bartle conceded the couple might have missed the description.
Bruce Stewart QC, acting for GE Custodians which funded the Tasman loan, pointed out that the fast doc declaration had been received by the Bartles' home fax on October 11, 2006, and faxed back eight minutes later. Both the Bartles' signatures and some of their handwriting was on it.
"Is it possible that it [the self-employed description] escaped your attention and you have signed it and sent it back in that form?" he said.
Judy Bartle agreed it was possible.
The Bartles say their Blue Chip-recommended lawyer, Jonathan Mathias, failed in his duty of care to them and should not have let them take out the mortgages.
They also say they were only ever aware of an initial $137,000 loan against their home.
Stewart questioned Judy Bartle about other documents she and her husband signed in connection with the borrowing. These included a proposal for a $366,000 mortgage over the Symonds St apartment and an acceptance and confirmation of a $125,000 loan over their Whangarei house.
"It was never explained to us that we were borrowing all this money," she told the court.
Stewart put it to her that the couple knew the weekly $480 rent on the apartment could not cover the $5000 monthly costs of all the borrowings.
"We were assured that it would work," she said. "There was no worry, Blue Chip would take care of everything."
"You assumed there was no risk because Blue Chip was a big and successful company," Stewart said.
"That's right," Judy Bartle said.
The court also heard yesterday that the Blue Chip group received $3.7 million in commission for selling 71 apartments in the Symonds St building the Bartles invested in.
