KEY POINTS:
Tasman Mortgages is sending out final demand notices to suffering Blue Chip investors, despite the scheme's liquidator telling them it wouldn't come to that.
Tasman, owned by publicly listed Lombard Group, was part-owned by Blue Chip Financial Solutions (NZ) and lent to many investors who took out mortgages on their homes to get into the Blue Chip scheme.
Jeff Meltzer, the liquidator of 21 Blue Chip-related companies, told investors at the March 26 creditors' meeting to seek two-to-three month mortgage holidays from their lenders while they found ways to address their financial problems.
"It's my view that there's not one financier at the moment that will issue a Property Act notice and move to a mortgagee sale," he said.
He said if investors received one they were to let him know.
"That will not go ahead in the current situation."
However, property investor and commentator Olly Newland, who is acting on behalf of many Blue Chip investors, believes dozens of people could be in for final demand notices from Tasman.
The lender wrote to Te Puke Blue Chip investors Cliff and Carol Hayes on April 2 about the $6600 owing on their $375,000 mortgage.
"Your urgent action is required," Tasman wrote.
"Please make payment of this outstanding arrears amount within 7 days of the date of this letter. Non-payment of this arrears amount will result in your account being passed on to our solicitor for the issuance of Property Law Act Notices and potential further legal action."
Carol Hayes understands that the couple's application for a three-month mortgage holiday on hardship grounds was turned down, but says they haven't received a Property Act notice yet.
She didn't know where this left them, as her husband was unable to work following an accident and she worked only part-time.
"Our house is under renovation. If it was to be sold right now we wouldn't even get market valuation."
Hayes said she knew of other investors in similar situations.
Lombard Group chief executive Michael Reeves said last month that about 10 per cent of Tasman's business was with Blue Chip clients.
The Herald understands Tasman's loan book totals about $270 million, meaning it has Blue Chip business of about $27 million. However, the company told the stock exchange this week that neither Tasman, nor its other mortgage business United, are directly affected if a borrower defaults because third-party lenders have funded the loans.
The third-party lender behind the Hayes' mortgage is GE Custodians, a wholly owned subsidiary of GE Finance.
A spokesman for GE Money, the trading arm of GE Finance, said the company felt for burnt Blue Chip investors and while it reserved its rights it would work with borrowers wherever it could to help them find solutions.
Tasman Mortgages did not return calls by the Herald's deadline.
MORTGAGEE SALE
* If you fail to make your mortgage payments, your lender - the mortgagee - has the right to recoup the loan by selling the property.
* At least four weeks before taking action the mortgagee must serve you with a notice under section 119 of the Property Law Act 2007.
* The mortgagee must obtain a reasonable price for the property, including adequately marketing it.
