Forums / Property Investing / Creative Investing / A reply to the SMH Article on Wrapper

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  • Profile photo of FFCommFFComm
    Join Date: 2004
    Post Count: 627

    Hi there,

    I see my article being discussed here too, ok I’m sure you are looking to hear about some of the missing bits of info?

    Ok, lets start with the first inaccuracy, the deal in question is not Michael Gruber’s, actually its mine.

    The quote, “Mr Gruber controls a company called Dark Thoughts Pty Ltd. A fortnight ago he marched into the xxx family’s living room, told the children to go outside and threatened costly legal proceedings if the parents did not sign an eviction agreement that week.”, contains a few errors…

    (i) The meeting with my clients was arranged by appointment, at a time and date of their choosing.

    (ii) The request for the children to leave the room was made by myself in the best interests of my clients due the sensitivity of the information I had to give at the time. It was a request clients believe made sense.

    (iii) There were no threats involve, I supplied an infokit containing all the calculations used and recommended they give this to their legal advisor.

    (iv) And no notice of eviction was issued during the meeting, they were asked to arrange contact with our legal advisor.

    The next quote I would like to discuss is, “The xxx wrap agreement says they must give up their small property at xxx, near xxx, if they miss just one repayment – which they did this year after xxx was retrenched from his factory management job and xxx suffered serious illness.”

    I would like to say that under the Uniform consumer credit code I am required to issue a default notice each time a borrower falls into arrears, which I have complied with – each time (each notice allows for a 30 day period to rectify the default or arrange alternative arrangements). Please refer to CONSUMER CREDIT CODE – SECT 80 (2) (a) and (b) for more info. A link to the section is provided here for reference.…ccc176/s80.html

    So the reality is, each time a payment was missed, the contract and the credit code would require I issue a default notice (which I did using LoanAlert), then manage the issue.

    With all the consumer protection provided by the code, a house could notbe taken with a single missed payment.

    Next I would like to point out that in the quote, “Three years ago the xxx found the xxx house and answered an ad by Mr Gruber to arrange the finance deal.”, the ad the article refers to was actually one that I wrote and published, not Michael.

    And in the quote, “According to xxx, Mr Gruber charged them $93,000 but did not disclose that he had paid just $76,000 for the property only weeks before.”, the article incorrectly states the situation.

    The system I use requires the buyer to find their own property, once they have I wrap it. In this case my clients found their property at a real estate agency and actually negotiated the price themselves. Combine this with the fact that the info-kit issued to them prior to purchase lists my margins, it would be impossible for them not to know all the details.

    Suffice it to say that this was not a recent issue, but one that began some time before. If you would like to know more I invite you to my blog at where you can read about it in more detail.


    Plese note this was taken from a post in another forum, but I think it is important people have the full facts. For the FULL facts check out


    Profile photo of Robbie BRobbie B
    Join Date: 2004
    Post Count: 2,493

    Come on Lucifer, the story was in the paper so it must be true and accurate!!!

    Robert Bou-Hamdan
    Mortgage Adviser

    0414 347 771

    FREE Finance-Related Newsletter – Click Here

    Comments made are of a general nature and should not be construed as individual advice.
    © 2004 Mortgage Packaging Pty Ltd

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 15,850

    What a distorted article!

    Discover Home Loans
    Mortgage Broker
    North Sydney
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    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Operating Remotely)

    Profile photo of pelicanpelican
    Join Date: 2003
    Post Count: 454

    I hope Michael G sues the SMH for negligence / incompetence & damage to reputation……

    About time these morons got both barrels for blantant fiction……

    You may know the cost of everything…. but what about the value ????

    Profile photo of SiboSibo
    Join Date: 2003
    Post Count: 126

    I agree. I think when the media wields the power it does, any knowingly-made distortion of the truth, especially when it concerns someones public reputation, should be cause for legal action.

    Kind Regards,
    Build Your Online Business with Mach-90

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