Sunday, Feb 15, 2009
Ha ha ha ha ha ha
FT: Lawsuit fears over mortgage holiday
Banks have warned Gordon Brown that his flagship £1bn scheme to underwrite a mortgage holiday for struggling homeowners could trigger a wave of lawsuits for misselling if house prices fall further.
They have told the prime minister that they need to ensure they will not be sued by homeowners who could lose money if they are encouraged to stay in their properties.
There are concerns that homeowners rescued from repossession could end up with significant negative equity instead - and that some could sue lenders.
Posted by little professor @ 05:14 AM (804 views) Add Comment
4 Comments
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1. mark wadsworth said...
"There are concerns that homeowners rescued from repossession could end up with significant negative equity instead"
Conerns? Could? "Racing certainty" and "will" spring to mind.
2. enuii said...
This one was slightly obvious from the start, I'm actually surprised how long it took the legal types to recognise the fact.
Nice business opportunity for the no-win no-fee parasites.
3. Roland Hill said...
have to agree enuii, those blasted unintended consequences again
4. plato said...
Yes, these concerns were pointed out by many HPCers originally. These desperate attempts to prop up the market simply spell more debt and more trouble. Our property price hikes spread like a virus from deserving locations to basically anywhere. That was silly,unjustified and greedy......actually incredibly tempting to just about anyone.
The only real cure is to let the market sort itself out and accept the imaginary losses for most and real losses for recent buyers. Get the misery overwith as quickly as possible. Of course it's not as simple as this as we are on a specific subject here and there are a lot of other problems but maybe it would be some kind of start toward better financial thinking.