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6 Month Repossession Pause Nearly Over

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At th end of 2008, a few of the top lenders said that they would not repossess a property for 6 months after payments had stopped being made. 6 months is nearly up. I would imagine that there is going to be a surge of repo's on the market which is good for buyers, bad for sellers.

What do you think will happen or do you think it will make a difference?

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At th end of 2008, a few of the top lenders said that they would not repossess a property for 6 months after payments had stopped being made. 6 months is nearly up. I would imagine that there is going to be a surge of repo's on the market which is good for buyers, bad for sellers.

What do you think will happen or do you think it will make a difference?

i think the procedure was just held up an extra 3 months. the warnings would have gone out as usual, but they would, at six months, have less of a job to show that they had gone the extra mile with defaulters.

I expect a rise possessions, not forgetting that the new lot will also have 6 months "grace".

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There have been a number of reasons why there have been very few repos to date all of which due to government intervention in one way or another

#Very low interest rates

#pressure on banks not to repo

#other schemes to hold off the inevitable

#propping up of employment

but all of these will be changing over the next 12months and beyond.

Imagine someone who is buying today (the greatest fool?), say a house for £170,000.

He could well say to himself "wow what a bargin as it was up for sale at £240,000 in 2007 and even if prices go down I'm still better off than if I bought then". Totally silly logic I know but people do think like this.

He could well say "it's only costing me an extra £100 a week and for the extra piece of mind its worth it"

He might well have fixed a mortgage for five years at a rate around 4%ish and have put down 40% of the price in cash from his savings as he would say "i wasn't getting any return on my money anyway"

In 12 months time

He still has some equity, just.

Interest rates have gone up (but he knew that) and they are now set to go up much more. But we were in a low interet rate economy? How did that happen

His job, has gone.

His outgoings, all of them, have risen

The incoming government are talking about a long haul out of depression and something about tightening your belt at the same time as saying it is time to pay the piper. No more help for homeowners.

But he maybe OK for around another 4 years before he comes off that fix.

At the same time as all this is happening rents are falling dramatically and saving rates are soaring, but very few people have any savings to gain from this. "Saving must be encouraged" as rates go even higher and once again money becomes a very expensive commodity.

Edited to change 100,000 a week to 100

Edited by Flat Bear

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