Tuesday, Aug 19, 2008
Courts getting clogged up with repossessions
Time Online: How the courts are coping with the mortgage crisis
"It comes as no surprise to the courts that mortgage possessions are up 48 per cent for the first half of this year. They have been steadily increasing for at least the past two years and are now accelerating at an alarming rate. At my court alone we have had to allow for extra days to deal with mortgage possessions which, by rule, have to be heard within eight weeks of the issue of proceedings."
Posted by quiet guy @ 02:32 PM (724 views) Add Comment
10 Comments
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1. quiet guy said...
There is also this curious paragraph:
"What is also intriguing is that a substantial number of defaulting borrowers are those who have taken out mortgages in the last couple of years, including a sizeable number who have not paid a single penny since the mortgage was taken out."
Flippers being caught out? Who buys a house and then doesn't even start payments?
2. Panda said...
That's VERY interesting. Thank you for that observation... That has been kept very quiet, all things considered. I do wonder.
3. inbreda said...
Can someone help me!! I cannot scroll down the list of articles posted on the homepage. The titles scroll - everything else stays where it is. I thought I could handle it, but now I really need a fix of HPC!!
4. crutchley said...
I think it's knackered
5. need-a-crash said...
@2. inbreda
Go to the the "XML" icon at the top of the news bar and you can view the articles that way.
6. enuii said...
Taking out a mortgage and not paying a penny and waiting to be repossessed is quite common across the UK as it generally takes 6-9 months to be booted out of the nice (usually new-build) place that is being defaulted on and lived in rent free. Just ask your local friendly court officer who issues the notices and changes the locks, the phenomenon is largely due to very lax standards of lending.
7. peter_2008 said...
enuii @ 5 Is it that simple? Well, I guess it is, if you got nothing to lose, like the NINJA Loans in USA, then the lenders can get absolutely nothing from you, apart from giving you a bad credit record. And that is like nothing, because you can get another mortgage easily. Obviously, this is still not as effective as robbing people in daylight, like our goverment do.
8. quiet guy said...
@peter_2008
@enuii
I suppose if you're planning to abscond abroad then that might be it but if you stay in the UK it look like a hell of arisk to me. In America, a borrower can walk away from the debt. in the UK, you are still liable for the loan amount, interest and legal expenses (although the banks will usually cut a deal for less if you show that you are making some attempt to repay).
If it were possible to walk away from mortgage debt in this country, the mortgage lenders would have Armageddon on their hands.
9. enuii said...
I have heard accounts from a friend who is a court officer of developers actually buying back defaulted properties from the mortgage lenders within days after the locksmith and court officers have arrived to repossess to avoid the stigma of having a repossessed house on their shiny new development. Another story related to a chap who bought over half a dozen properties, may have been 10 (I can't remember) never paid a penny on the BTL mortgages had them repossesed and sold on (over 18 months ago) and actually made money out of it!
It's all happening out there and is largely unreported, you name it more imaginative scams than you can possibly think of have been going on during NeuLiebors little property boom has been going on.
10. quiet guy said...
@enuii
Thanks for interesting and somewhat depressing feedback. Perhaps I've been a mug all along; I just should have lied to buy as much property as possible and hoped for the best. Sanctity of contracts? Pah! that for losers it seems.