Woman ordered to pay $320k proprty debt

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An Auckland woman has been lumbered with a $320,000 debt after she claimed she was conned into buying a house at an over-inflated price.

Helen Rutherford bought the house in Meadowbank for $300,000 more than its worth.

Rutherford was taken to the High Court at Auckland by ANZ National over a loan for the house, and lost.

She told the court she agreed to buy 50 Temple St in Meadowbank on April 5, 2007, from Vijay Enterprises for $850,000.

She said she did not know the house was worth only $550,000.

Real estate agent Philip Cavanagh arranged an $800,000 loan so she could buy the house from his associate Raghu Aryasomayajula.

However, Cavanagh has since been declared bankrupt, leaving ANZ National to chase the money from Rutherford.

The bank pre-approved a loan of $427,000 to Rutherford, whose income was $50,000 a year. Days later she and Cavanagh – then an agent for Barfoot and Thompson Mt Albert – applied to the bank for the $800,000 loan. Read MORE

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