Ill man blames charitable trust for losing home

Don Clark fell into debt after a vicious assault in 2006 left him with serious head injuries. Photo / Bay of Plenty Times

An ailing retired man has lost his home of 22 years and thousands of dollars after agreeing to have his mortgage handled by a supposed charitable trust.

Don Clark, 65, was struggling with mortgage payments and financing debts after his Tauranga taxi business went under late last year.

He first fell into debt after a vicious assault in 2006 left him with serious head injuries and impaired vision. He was unable to work for 18 months.

Still suffering from chronic headaches two years later, he tried to resolve his escalating mortgage problem to reduce the stress on his health.

A friend recommended Hamilton-based group Home Rescue, which offers help to homeowners who have lost their income or are facing foreclosure from the bank.

The Home Rescue trust claims that mortgages are fraudulent by nature, and says it has "unequivocal proof" to back this theory. It is taking its claims to the Commerce Commission and the Serious Fraud Office.

"They seemed like genuine guys who knew what they were doing," Mr Clark said. "They said they'd take on my mortgage for a small fee, stop the finance company hassling me, and represent me in court if needed."

But despite paying the group $3000, his finance company Liberty Financial took him to court in July, and repossessed the house he had been living in since 1987. Home Rescue did not return his calls.

The trust, which he gave power of attorney for his house, did not appear for him in court, and his property was forfeited.

"When I threatened to tell media about it they called me back immediately. But they asked for more money, and said that the issue would be resolved soon," said Mr Clark.

Meanwhile, Mr Clark is being supported by his family. He lives in a rental property, is looking for employment and is unable to afford a lawyer. "It's a lousy feeling," he said.

Home Rescue told the Herald it made no guarantee of protecting its clients' properties, but would work to win compensation for anyone who lost their house. It said communication had broken down with Mr Clark, and they did not know his home was being taken from him.

Spokesman Brendon Holmes said two clients had lost properties, but the trust had helped keep many more afloat. On its website the group claimed to have saved 30 homes since it was established a year ago. It calls itself a charitable trust established by the Tapaeururangi hapu, but it is not registered by the Ministry of Social Development.

Mr Holmes said Mr Clark had lost his property because the trust was still ironing out a difficult legal process.

"At the beginning of such a controversial process it can be expected that some hardship will be experienced first. We never make any warrantees or guarantees We can't guarantee ... just like a lawyer can't guarantee winning every case."