TENANTS threatened with eviction after being caught up in an alleged buy-and-rentback property scam are being urged to hold their nerve.

More than 100 North-East families were told by a High Court judge that their homes could be repossessed – despite being potential victims of fraud.

The situation arose after the collapse of Gatesheadbased firms North East Property Buyers and Newcastle Home Loans, which are subject to a criminal investigation.

Meanwhile, people who sold their homes through the firms, hoping to remain on as tenants, are having to fight through the civil courts as the banks try to evict them.

Solicitors have appealed against November’s High Court judgement meaning families can at least stay until a verdict is reached early in the new year.

However, Kelly Bushby, head of housing at Clark Willis, Darlington, said some have given up their homes – and sent a message to those still holding on.

“Don’t give up,” said Mrs Bushby. “If you can possibly hold on and stay without making yourself ill, then stay.

“It would be such a shame if the Court of Appeal said people can stay in their homes, but they have left already.

“We still believe we have a good chance of success. We wouldn’t have taken it to the Court of Appeal if we didn’t, but there are also other avenues we can pursue.”

The Legal Services Commission has given Clark Willis permission to take the Legal Aid-funded cases forward, but the firm is offering free help to those who do not qualify for the scheme.

Mrs Bushby said Clark Willis is representing between 30 and 40 families, but she added that there is likely to be many more affected and urged them to come forward.

Detectives are investigating more than 2,000 mortgage applications as part of their investigation.

A spokeswoman for Northumbria Police said: “The investigations are ongoing.

We have arrested or interviewed as suspects more than 20 people in relation to this case and are still carrying out inquiries.”

Mrs Bushby has renewed her offer of free advice to those facing eviction and is available on 01325-281111.