A Tauranga woman who used equity in her property to invest in a failed Blue Chip complex faces the prospect of losing her home as recovery proceedings begin this week.
Margaret Rasmussen-Aagaard, 69, used the equity in her Tauranga home to buy into the apartment building in Auckland before the collapse of Blue Chip, which left about 3,000 investors owed $80 million.
Mrs Rasmussen-Aagaard says the Government has failed her, and she was hoping for at least a freeze on payments while the matter is being investigated.
She faces a bill of $215,000 and says private action would cost $30,000. Mrs Rasmussen-Aagaard says her home is all that she has.
Australian mortgage firm Challenger says it has a legal obligation to take recovery action.
Commerce Minister Simon Power says it would be inappropriate to intervene in the case, though he is sympathetic to the plight of Blue Chip investors.
Mr Power says no action can be taken until various investigations, such as reports by the Serious Fraud Office and the Companies Office, are complete.
