Radio 4 programe on the housing market last night
Discussion
Anybody hear it?
It shocked me to the core.
33 years old woman earning £33k a year being evicted by HBOS, despite being a customer for almost 20 years and having 2 kids ( 2 and 11). Hubby got them into debt following a dream to open a restaurant, got them 12 months behind on the mortage then buggered off. She had made an offer to pay arrears and reduce her payments by extending the term of her mortage; turned down flat by HSBOS who were within 24 hours of repossessing. Bad enough until you realise she had worked for HSBOS for 24 years!
They looked at what repossessions were selling for at auction and looked at their price at the peak in Oct 2007. Some had lost over 60% of their value. seems these repossession and their re-sale figures are not included in the numbers we get told are the price falls. Estate agent sales only, and they now represent a much smaller % of sales. I checked it out with a house near me. Sold this month at auction for £111K. The folks had paid £169K for it as a new build in August 2007. Frightening.
The fact that the banks are unlikely to play ball with this 3 month cooling of period the Govt. are suggesting before repossesion. HSBOS were repossessing the house above despite the judge saying they were mad and having a decent offer on the table (she even offered to let them take her payment direct from her salary). They told porkies about her making the offer (it was in fact recorded in the court papers). Strikes me they just want the hard cash back, even if it means a reposession and not geting what they could by trying to find a solution and waiting a few years.
Finally, the role of Hedge and so called 'Vulture' funds buying up debt to simply repossess and sell, with no interest in keeping people in their houses. Outside the reach of the FSA exceopt through the mortage managers they employ.
Overall, they were suggesting this could be one hell of a dip and much bigger than we are being told. Moreover that the UK is probably in the most precarious position with regard to property debt than any developed country.
We are, as they say, up pooh street.
It shocked me to the core.
33 years old woman earning £33k a year being evicted by HBOS, despite being a customer for almost 20 years and having 2 kids ( 2 and 11). Hubby got them into debt following a dream to open a restaurant, got them 12 months behind on the mortage then buggered off. She had made an offer to pay arrears and reduce her payments by extending the term of her mortage; turned down flat by HSBOS who were within 24 hours of repossessing. Bad enough until you realise she had worked for HSBOS for 24 years!
They looked at what repossessions were selling for at auction and looked at their price at the peak in Oct 2007. Some had lost over 60% of their value. seems these repossession and their re-sale figures are not included in the numbers we get told are the price falls. Estate agent sales only, and they now represent a much smaller % of sales. I checked it out with a house near me. Sold this month at auction for £111K. The folks had paid £169K for it as a new build in August 2007. Frightening.
The fact that the banks are unlikely to play ball with this 3 month cooling of period the Govt. are suggesting before repossesion. HSBOS were repossessing the house above despite the judge saying they were mad and having a decent offer on the table (she even offered to let them take her payment direct from her salary). They told porkies about her making the offer (it was in fact recorded in the court papers). Strikes me they just want the hard cash back, even if it means a reposession and not geting what they could by trying to find a solution and waiting a few years.
Finally, the role of Hedge and so called 'Vulture' funds buying up debt to simply repossess and sell, with no interest in keeping people in their houses. Outside the reach of the FSA exceopt through the mortage managers they employ.
Overall, they were suggesting this could be one hell of a dip and much bigger than we are being told. Moreover that the UK is probably in the most precarious position with regard to property debt than any developed country.
We are, as they say, up pooh street.
Edited by Brown and Boris on Wednesday 26th November 08:56
Brown and Boris said:
Overall, they were suggesting this could be one hell of a dip and much bigger than we are being told. Moreover that the UK is probably in the most precarious position with regard to property debt than any developed country.
This has been argued by the "bears" on the numerous property threads over the last year. Edited by Brown and Boris on Wednesday 26th November 08:56
It should have been so simple for HBOS.
You ignore the history, look at the possibility that said customer can make payments at least in short term, and then you agree that provided she pays at least the interest, which you agree to Fix for 10 years, then you'll put repossession procedings aside.
Long Term there's GOT to be more money in it for them ?
You ignore the history, look at the possibility that said customer can make payments at least in short term, and then you agree that provided she pays at least the interest, which you agree to Fix for 10 years, then you'll put repossession procedings aside.
Long Term there's GOT to be more money in it for them ?
Mr POD said:
It should have been so simple for HBOS.
You ignore the history, look at the possibility that said customer can make payments at least in short term, and then you agree that provided she pays at least the interest, which you agree to Fix for 10 years, then you'll put repossession procedings aside.
Long Term there's GOT to be more money in it for them ?
The banks are not looking at long term though ,most of them are deep in the manure and need cash now not smaller payments over the longer term (Even though they would gain more ).Its a fire sale mentality but if you need funds fast an easy way of gaining them You ignore the history, look at the possibility that said customer can make payments at least in short term, and then you agree that provided she pays at least the interest, which you agree to Fix for 10 years, then you'll put repossession procedings aside.
Long Term there's GOT to be more money in it for them ?
Mr POD said:
Long Term there's GOT to be more money in it for them ?
Which is why they only re-possess where there's no realistic chance of getting their money the easy way - by leaving the customer in the house. Don't forget that many people are hopelessly optimistic about their ability to repay their debts.Brown and Boris said:
Anybody hear it?
It shocked me to the core.
33 years old woman earning £33k a year being evicted by HBOS, despite being a customer for almost 20 years and having 2 kids ( 2 and 11). Hubby got them into debt following a dream to open a restaurant, got them 12 months behind on the mortage then buggered off. She had made an offer to pay arrears and reduce her payments by extending the term of her mortage; turned down flat by HSBOS who were within 24 hours of repossessing. Bad enough until you realise she had worked for HSBOS for 24 years!
They looked at what repossessions were selling for at auction and looked at their price at the peak in Oct 2007. Some had lost over 60% of their value. seems these repossession and their re-sale figures are not included in the numbers we get told are the price falls. Estate agent sales only, and they now represent a much smaller % of sales. I checked it out with a house near me. Sold this month at auction for £111K. The folks had paid £169K for it as a new build in August 2007. Frightening.
The fact that the banks are unlikely to play ball with this 3 month cooling of period the Govt. are suggesting before repossesion. HSBOS were repossessing the house above despite the judge saying they were mad and having a decent offer on the table (she even offered to let them take her payment direct from her salary). They told porkies about her making the offer (it was in fact recorded in the court papers). Strikes me they just want the hard cash back, even if it means a reposession and not geting what they could by trying to find a solution and waiting a few years.
Finally, the role of Hedge and so called 'Vulture' funds buying up debt to simply repossess and sell, with no interest in keeping people in their houses. Outside the reach of the FSA exceopt through the mortage managers they employ.
Overall, they were suggesting this could be one hell of a dip and much bigger than we are being told. Moreover that the UK is probably in the most precarious position with regard to property debt than any developed country.
We are, as they say, up pooh street.
Repo houses always sell for well under (current) market value if the people have owned them a while, as the reserve price is the amount outstanding on the mortgage. Anything it makes above this is returned to the owner, but provided the bank gets back what it was owed it is happy. Plus new build purchase prices often include white goods, carpets etc in the price which have little resale value compared to purchase price.It shocked me to the core.
33 years old woman earning £33k a year being evicted by HBOS, despite being a customer for almost 20 years and having 2 kids ( 2 and 11). Hubby got them into debt following a dream to open a restaurant, got them 12 months behind on the mortage then buggered off. She had made an offer to pay arrears and reduce her payments by extending the term of her mortage; turned down flat by HSBOS who were within 24 hours of repossessing. Bad enough until you realise she had worked for HSBOS for 24 years!
They looked at what repossessions were selling for at auction and looked at their price at the peak in Oct 2007. Some had lost over 60% of their value. seems these repossession and their re-sale figures are not included in the numbers we get told are the price falls. Estate agent sales only, and they now represent a much smaller % of sales. I checked it out with a house near me. Sold this month at auction for £111K. The folks had paid £169K for it as a new build in August 2007. Frightening.
The fact that the banks are unlikely to play ball with this 3 month cooling of period the Govt. are suggesting before repossesion. HSBOS were repossessing the house above despite the judge saying they were mad and having a decent offer on the table (she even offered to let them take her payment direct from her salary). They told porkies about her making the offer (it was in fact recorded in the court papers). Strikes me they just want the hard cash back, even if it means a reposession and not geting what they could by trying to find a solution and waiting a few years.
Finally, the role of Hedge and so called 'Vulture' funds buying up debt to simply repossess and sell, with no interest in keeping people in their houses. Outside the reach of the FSA exceopt through the mortage managers they employ.
Overall, they were suggesting this could be one hell of a dip and much bigger than we are being told. Moreover that the UK is probably in the most precarious position with regard to property debt than any developed country.
We are, as they say, up pooh street.
Edited by Brown and Boris on Wednesday 26th November 08:56
The woman in the HBOS case had allegedly ignored warning letters for several months before repo action was started too.
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