Monday, Feb 11, 2008
Repossessions could double this year
MoneyWeek: Why house repossessions could double this year
Repossessions jumped by 20% to 27,100 last year. And worryingly, those numbers don't include the knock-on effects of the credit crunch - expect this year's to be much worse.
Posted by mary @ 10:50 AM (638 views) Add Comment
8 Comments
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1. japanese uncle said...
I would not be surprised to see the cases of repossessions will rise up to half million or even more by 2010, if or rather when the domino of all those fragile elements, such as full-scale recession giving rise to soaring unemployment, full-scale collapse of the housing market and stock market, (imminent) meltdown of the financial sector as one and only engine of the economy, really kicks in simultaneously to roar like a juggernaut.
2. confused76 said...
good point about the lax lending by NR underwritten with taxpayers' money.
NR is just the stealth Freddy Mac / Fanny Mae that Gordy has equipped himself with... off balance sheet of course! It is an absurd risk taking with public money. If the magic growth does not materialize, the pound will fall off the cliff!
3. confused76 said...
David Smith's morale was particularly low this morning. because of the inflation data, he will have to rewrite his Times' articles for this week. I tried to cheer him up with the following post on his blog www.economicsuk.com
David,
since we are becoming "pen pals", mind if I ask your opinion: is the government, with NR, de facto underwriting the housing market? What is the chance that the EU will/will not find a way of stopping this, despite best effort by the govt to keep NR "off B/S"? With a potential UK Treasury exposure of £100bn, what impact do you think NR has had/will have on the GBP? Are you planning to write a piece about this?
Two references:
http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=430180&in_page_id=8
http://www.moneyweek.com/file/42070/why-house-repossessions-could-double-this-year.html
"It’s interesting to see that against this backdrop, Northern Rock is still writing its ‘Together’ mortgages, which allow anyone buying a property to borrow 125% of its value, plunging them deep into negative equity at a time when house prices are falling. Good to see that the government and you and I, the taxpayer, are propping up a company with such a far-sighted approach to lending, isn’t it?"
4. Landedgentry said...
Fantastic ! I feel like Montgomery Burns (EXCELLENT)
"Bulls make money, Bears make money, Pigs get slaughtered" (Some 1920's stock market guru dude, forgot the name)
5. Landedgentry said...
Confused LOL
6. dugmug said...
If you look at the latest stats for mortgage possession actions (
Ministry of Justice report ) you will see that we are already at levels not seen since 1990 and 1992! The fact that the number resulting in actual repossession are seemingly relatively low (so far anyway), compared to those years, presumably means that lenders are already being quite lenient when it comes to enforcing orders? Or people are using these sell and rent-back companies before the lender can finally take possession? Perhaps someone with more knowledge of how repossession orders work can enlighten me here, please.
Anyway, it looks like there are a lot more people struggling than the headline repossession figures of 27,000 suggest, and therefore we are already a lot closer to early 1990's levels of problems than the commentators in the press are pretending/deluding themselves about.
7. dugmug said...
Let's try that link again! :-)
Ministry of Justice Report
8. doomwatch said...
The lender usually applies for a CCJ after 3-4 missed payments. This can take a while as it involves solicitors.