Missing Asset Bank interest - Claimable?

Missing Asset Bank interest - Claimable?

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A client sent a deposit of £77K over to Florida to purchase a property. Of this £77K, £22K went into escrow, £55K  to the developer.

Subsequently, a legal class action case was established against the developer who filed for bankruptcy.

£22K of the deposit was retrieved by the client from the Escrow fund, with no existing rights over the property i.e the contract was annulled by a legal team.

The client has therefore lost £55K but will continue to have to pay interest on the £77K for the mortgage term i.e another 20 years.

The question is:

The £77K came from a home equity release, the mortgage interest on the the £77K was claimed up to the point the escrow funds were retrieved.

Can the client continue to claim interest on the £55K even though there is no asset (property) in existence?

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By Fred Smith
14th Mar 2012 14:36

Was the equity released from a rental property to buy another rental property?

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By User deleted
14th Mar 2012 15:17

The equity was released from the clients personal home.

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