Wednesday, Jan 30, 2008
Looks bad for the mortgage lenders if this becomes widespread
YouWalkAway: Just walk away from your debts
Are you stressed out about your mortgage payments? Do you have little or no equity in your home? Is your home sinking under the waves of the real estate crash?
What if you could live payment free for up to 8 months or more and then walk away without owing a penny?
The lender will not be able to chase you for any deficiency or loss once they foreclose. [N.B. this would not be the case in the UK]
Let us help you. Unshackle yourself from a losing investment and use our proven method to just walk away.
Posted by little professor @ 10:52 AM (965 views) Add Comment
10 Comments
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1. little professor said...
2. Chris said...
I suspect this is a back office scam preying on the vulnerable, whats new !!!!!!
3. cornishman said...
You have to apply to 'see if you qualify'.
I wonder how many people qualify and how many do not qualify but then go on to get calls from people trying to sell them services - or buy their home off them cheaply before it is repossessed.
4. Jonb said...
I remember people selling that sort of thing here during the last crash. It didn't work here then, and it probably doesn't work there now.
5. techieman said...
Irrelevant here for a direct comparison, although could have some implications re the mortgage securities from the US. Relative to here little profs right wont work here, MIG insurers will be after you as will the lenders. What interests me is the fact that if this becomes a tidal wave what happens and how will this dovetail into IVAs / Personal Bancruptcies.
6. David Smith's Sub Prime. . . said...
"...You will immediately know the exact amount of days you have to live in your house payment free...."
Errrrrm .... Yes and what was it Crash was thinking of bringing in? A payment holiday!!!
Whoppee! Now where is my credit card?
7. drewster said...
What happens in the UK if your house is repossessed and the bank doesn't manage to sell it for more than the outstanding mortgage? Does the mortgage debt remain with the individual or does the bank write it off? (Assuming it's your only asset)
8. techieman said...
@drewster - i refer to the answer i gave a few moments ago - i.e. you are in the sh1t. Thats a reason why its deflationary! Otherwise we would all be BTL landlords and as soon as things go wrong give the keys back OR we could MEW and put the money in a Swiss numbered account -now there's a thought!!!!
9. Pamery said...
A mortgagor (borrower) is liable to pay the mortgagee (lender) any shortfall in the case of a repossessed home being sold for an amount less then the outstanding mortgage.
The lender has up to six years to reclaim interest, twelve to reclaim capital.
Details here.
http://nt4992.vs.netbenefit.com/resources/pdf/Mortgage_Repossessions_Part_2.pdf
Note that the legal advice to the lender is to wait until the borrower has reestablished him/herself financially and then ask for the cash.
So UK laws are far tougher than those in the US - another reason to expect the housing collapse to be worse here.
10. drewster said...
Thanks Techie. Most BTL investors would probably have other assets which the bank could claim - most notably, their original house. But things are different for ordinary owner-occupiers. Here is a plausible chain of events:
Over-stretched owner-occupier with a large mortgage outstanding suddenly loses his job. Unable to make interest payments the bank repossesses the house. He moves in with family or friends or maybe gets a council house. Still unemployed, meanwhile the debt continues to accrue interest. The bank pushes for a bankruptcy order, only to discover that the person doesn't own anything else of value. (If he's smart he will have "sold" his car to his sister for £1.) Result: the bank doesn't get their money, debt defaults rise, account-holders get worried.
This sounds like an increasingly common scenario when we consider just how many 95%+ LTV mortgages were sold. I can't help notice that a unusually large proportion of buyers during the boom were "chavs". Their attitude to money is more easy-come easy-go rather than prudence. I can't imagine many of them are too bothered about bankruptcy, just as long as it doesn't affect their dole money. Am I being a snob or is there a valid point in there?