Tuesday, Oct 28, 2008
Radical plan being considered.
Telegraph: Bank of England: 1.2million face negative equity as property slumps
New Business Secretary Lord Mandelson warned that the scale of current financial crisis was "unparalleled".
"I don't think people have yet realised what the impact is going to be on the real economy, on businesses and jobs back at home," he said
Last night, it emerged that the Government is considering a radical plan to ensure some homeowners can hang onto their homes, with families selling their homes to an investment bank and renting them back at a reduced rate.
Posted by gardeniadotnet @ 05:28 AM (603 views) Add Comment
7 Comments
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1. malct said...
"a radical plan to ensure some homeowners can hang onto their homes, with families selling their homes to an investment bank and renting them back at a reduced rate."
wealth extraction (or transfer if you wish) it's a programme
2. Ictoa said...
They didn't seem to care about Negative Equity when 1000s took out 100% + mortgages. This is infuriating, our children will end up paying excessive taxes to ensure they'll never be able to buy property, lovely.
3. whostolemyendowment said...
But renting is lost money....isn't it?
4. Loneranger said...
But what price will these transformed renters have to pay to buy back these properties at a later date? In addition, what happens to the outstanding debt on any negative equity accured, is this just added to the new mortgage when things 'improve'? Quick math: est 50% house price fall from £200,000 2007 peak, bottom of HPC price £100,000. Previous owner/new renter now wants to buy back at bottom price of 100,000, investment bank sells back but charges previous owner for outstanding losses up to £100,000, previous owner now stuck with negative equity of £100,000 thus still in same boat as when deal started only the falls are greater! Please, am I missing something here or is this the next big scam by the banks......
5. justwatching said...
Is that the Bank of Future Taxpayers?
What investment bank would consider making such a sh*ite investment. (apart than one run by Bodger & Brown)
6. mountain goat said...
"families selling their homes to an investment bank and renting them back at a reduced rate....Financial experts claim the scheme is a winner because it prevents families from losing their homes, there is minimal long-term cost the taxpayers and the banks and it is likely to stem the tide of bad debt blamed for the current crisis."
Where does all the money come from, we are talking billions? "minimal long-term cost the taxpayers" maybe, but short-term our borrowing goes to the moon.
7. malct said...
3. whostolemyendowment said...
But renting is lost money....isn't it?
Tuesday, October 28, 2008 08:40AM
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
not if you're loosing less than you would be if you were buying
is the stock answer