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Apparently neither did one of his lenders, the Desert Schools Federal Credit Union, which gave him a home equity loan secured by, the contract states, the "security interest in your dwelling or other real property".
After taking its cut, the debt consolidator gives a new loan, secured on the family's property.
It requires the homeowner to take out a loan secured against his or her home.
But Andersen learned that the money from Barclays was actually a loan secured by $6.6 million in cash collateral.
He is thought to have offered £40m in cash and a £40m loan secured against BHS's assets.
In addition, some people who took out a personal loan secured against their property will also be getting a windfall.
Similar(17)
A logbook loan Securing a loan on your car is a bad idea too.
The banks are bleeding from loans secured by raw real estate, and from loans for construction.
Traditionally, shipping finance came from plain vanilla bank loans, secured against ships.
Furthermore, the problems have arisen mainly with unsecured borrowing rather than with loans secured against homes.
They can also borrow from banks to build more with the loans secured on their stock.
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