Sunday, Jul 25, 2010
Eat up osito
The Independent: Repossessions likely to rise as options run out for struggling homeowners
Homeowners are warned that a three-pronged attack could see the number of repossessions spiral. Lenders are losing patience with those in arrears; government support programmes are being cut and economic shocks to the system will see interest rates creep up and potential unemployment figures soar.
The latest forecast from the Council of Mortgage Lenders (CML) predicts there will be 53,000 repossessions in 2010, but a new study has warned that home repossessions could mount to 175,000 in 2012.
Posted by gone-to-colombia @ 03:57 AM (2017 views) Add Comment
15 Comments
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1. miken said...
We all know this IS a worse recession than the early 1990's and so it's no surprise there are a huge number of repossessions in the pipeline.
Fact remains salaries are falling, jobs are being cut and interest rates must rise to enable banks to make money. All points to significant house price falls and a huge increase in the number of people who are unable to move or are repossessed.
2. paul said...
Somebody must do something. Can't these people be given some of the billions from QE directly to help save them from the utter horror of renting? etc.
3. uncle tom said...
Much the best way to help people who get themselves into a financial mess, is not to waste taxpayer's money bailing them out, but to build new social housing that can be rented to them on an economic basis.
If land is used that is either state owned or compulsory purchased at agricultural value, you can construct ordinary decent family houses for about £60k, when all costs and amenities etc are accounted for.
Those houses can then be profitably rented out for £500/month, which for most families is affordable, even if they've just gone bankrupt..
Thus the feckless get re-housed, and the taxpayer makes a profit
4. Crunchy said...
Will the Banks become the new master landlords with never ending rents flowing in over the coming new decade and perhaps beyond.
It's not the first time I have said this here. What's left of social housing and the BTL brigade will be much reduced over the coming years along with buyers.
Game still on. Agenda? Move along Mr Crunchy please, nothing to see here!
Recaptcha - 'house, boiling'
5. taffee said...
build council houses...in 1988 there were 6.1 million now just over 1 million
6. the number cruncher said...
UT - I never understood why councils cannot use their powers of compulsory purchase to help development of social housing - this happens all the time in Spain
I am involved with some compulsory purchase of land (not for housing) and I cannot for the life of me get straight answers from senior public servants as to why is is so difficult. Thety always pull out at the last moment and never commit, hoping to settle before they go down the legal route.
the prevailing attitude seems to be that anyone who does start the process of compulsory purchase is kissing goodbye to their career, and legal advisers to civil servants tell them that they are opening themselves up to lengthy legal battles and large compensation schemes.
7. icarus said...
There's a bit about losses to lenders (those repossessing residences which are losing value) getting smaller as the housing market recovers. The housing market is recovering only in certain areas and sectors and for the most part those aren't the areas and sectors where repossessions are (actually or potentially) taking place.
"Lenders are under pressure to take repossessions only as a last resort". Would that be pressure from the fact that they couldn't sell the repossessed residences without flooding already sinking markets? No mention in the article of the ratio of potential to actual repossessions and of actual repossessions to sales (actual or attempted) of same.
(I didn't think you could write for the Independent if you used the word "exasperate" as she does at the end of para 5.)
8. paul said...
This article is a thinly disguised plea for more government money to be thrown at the housing market, not to help those facing repossession but to stem the current haemorrhage in values for the benefit of the wider market.
And no, icarus she can't write either.
9. estrader said...
1) Lenders are losing patience with those in arrears;
2) the debt charity, which says that the recovery of the housing market may lead to previously merciful lenders beginning to enforce suspended possession orders
3) The Government's cuts to support programmes for people failing to meet their mortgage repayments will add to the woes of struggling homeowners
4) schemes that were introduced by the previous government to combat the rising number of repossessions
5) support for mortgage interest payments (a scheme for homeowners out of work)
6) mortgage support scheme, designed to help a household struggling with a temporary loss of income by deferring interest repayments for up to two years,
MERCIFUL lenders and MASSIVE Government support, the "fundamentals" which make property a great investment for everyone. You can'tlose.
10. taffee said...
no-one seems bothered that our kids(next generation of tax payers) cannot buy into society because of our greed.
That's why they get p**sed at the weekend and stab each other behave anti socially....what would you do?
11. bidin'matime said...
Icarus / Paul - I thought the same about ‘exasperate’, but I looked it up and found Definition of exasperate includes ‘Exacerbate’ :-
exasperation - actions that cause great irritation (or even anger)
annoying, vexation, annoyance, irritation - the act of troubling or annoying someone
exacerbation - violent and bitter exasperation; "his foolishness was followed by an exacerbation of their quarrel"
12. bidin'matime said...
Lets try that again…’
13. bidin'matime said...
My exasperation may be exacerbating the problem, but I'm sure I followed the same format for the link as I have in the past - have the rules on links changed..? (Excuse my ignorance on such matters..)
14. drewster said...
bidin'matime,
Links should work like this:
<a href="http://www.housepricecrash.co.uk/">House Price Crash</a>
Always remember to include the "http://" at the front. Otherwise it doesn't work.
15. Eternal Sceptic said...
there is a very easy solution, continue the government bailout, but with one difference. The government takes a variable chunk of the equity, to be paid back on the sale of the house. House valued at current price, government paid back first, all losses to the main asset holder. This way the banks donot have to swallow even more dodgy debt, and in time the government makes a few bob back on the loans. Far better than giving money to the banks to subsequently give away in huge bonuses.