North Cyprus Property | TRNC Koop Bank Stealth Mortgage

Without Prejudice

North Cyprus Property | TRNC Koop Bank Stealth Mortgage

It does not matter which country in the world you live in, if you borrow money to buy a house, or carry out improvements on your house, and you renege on that mortgage, your home can and in the final analysis will be forfeited. It is the risk you take when YOU borrow and use your home as security. Every document you obtained and signed warned you of that risk. I am sure when you signed, you were aware of that risk.  That is the nature of a mortgage.

However, if you pay for your property in full and then the person who sold it to you borrows money using your property as security, without you knowledge or consent, who then is to blame? Is it the borrower who knowingly defrauded the lending source OR is it the lending source who was so cavalier in their lending as to not even make the most cursory of checks on either the borrower or the security? Either way, once the situation is known, surely the problem is between the borrower and the lending source. How can the innocent owner, the third party in this be held responsible?

Here is yet another example of this fraud that has been going on in north Cyprus unchecked and unpunished for over 9 years. Let us remember the third party in this signed NOTHING binding them to the lending source, nor were they privy to the transaction so were not warned of the risk of not paying, simply because the debt was not theirs. Had the lending source even bothered with the most fundamental of checks, sending out a surveyor, or checking with the tax office to see if Contracts on these Kocans had had stamp duty paid on them, or most important of all, the borrower’s credit record and ability to pay. Maybe even check with their borrowers bank, they would have seen money coming in from purchasers by way of stage payments and might, just might have asked to see the Contracts that married up with these stage payments.

There were many way they could have checked out the suitability of lending to these borrowers. It seems they did none of these things. Why? Because they were sloppy, maybe even negligent, in their lending policies with money that they only have the stewardship of. We know in at least one case, the bank did a survey, knew they should be asking questions and allegedly chose not to.

Above is another example of a Stealth mortgage. Boyut Harmony is another example. Armacon yet a third and there are so many more. We believe there are still over 1400 home owners who stand to lose their homes to banks who gave mortgages to landowners/builders/developers after these homes had been sold to third parties and without the knowledge or consent of those third party owners. How to have your cake and eat it north Cyprus style. How can this ever be addressed until these fraudsters are prosecuted under the criminal law. Fraud is, and always will be a criminal offence and to say it is a civil offence is a cop out.


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