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Losing "their" House

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I get sick of hearing people saying they are going to lose "their" house if the property is repossessed. If it's being repossessed it can't be "their" house - that's the point. Surely until people own at least 50% equity in a property it can't be described as "theirs".

What percentage equity should people own until it's "their" house?

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I get sick of hearing people saying they are going to lose "their" house if the property is repossessed. If it's being repossessed it can't be "their" house - that's the point. Surely until people own at least 50% equity in a property it can't be described as "theirs".

What percentage equity should people own until it's "their" house?

Let's call a spade a spade here.

It is their house. You are confusing a secured loan with renting. The house is as much theirs as it would be if they had paid their mortgage off in full. They risk losing their house because the house is collateral against the loan.

Don't be ignorant. Truth is very important.. Do not allow jealousy / frustration to cloud your judgement or you will screw up!

Edited by Where is my pen?

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Did they say 'house' or 'home'?

Two very different concepts. One is bricks and mortar, one is a home. People can lose their homes, but if the house doesn't belong to them, they can't lose their house as well.

When people refer to places as houses it seems to me that they're thinking of them purely in financial terms - somewhere to make money.

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Let's call a spade a spade here.

It is their house. You are confusing a secured loan with renting. The house is as much theirs as it would be if they had paid their mortgage off in full. They risk losing their house because the house is collateral against the loan.

Don't be ignorant. Truth is very important.. Do not allow jealousy / frustration to cloud your judgement or you will screw up!

In the real World it is not. I will have a debate on it if you wish. However I will be right - so there is no point. ;)

I love how some think a person who owns an asset with a 100% loan attached is an owner. :lol:

I do not know where to begin....

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In the real World it is not. I will have a debate on it if you wish. However I will be right - so there is no point. ;)

I love how some think a person who owns an asset with a 100% loan attached is an owner. :lol:

I do not know where to begin....

Do not be thick sir, please, it is embarrasing!

When you purchase a house it is yours. Where you got the money is immaterial. If you default on a loan you risk bankruptcy. If you put your house as security, then the bank can force you to sell your house to cover the loan. This is all by the by. What is it about this that you find so difficult?

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It's yours when you've paid for it, simple as that really. :P

You are correct. You know the amusing thing ? When I see someone on TV who owes more than their house is worth ? I know one thing.

I OWN MORE OF THEIR HOUSE THAN THEY DO.

That is a simple fact. Yet I am supposed to feel sorry for them.. :o

What a pile of pish. I deserve to be sitting in their living room more than they do.

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Let's call a spade a spade here.

It is their house. You are confusing a secured loan with renting. The house is as much theirs as it would be if they had paid their mortgage off in full. They risk losing their house because the house is collateral against the loan.

Don't be ignorant. Truth is very important.. Do not allow jealousy / frustration to cloud your judgement or you will screw up!

I own my house outright - the day I paid my mortgage off I went home and I thought to myself - "I own this place, it's mine". I never thought that before when I had a mortgage - I was just a partial owner - in my mind at least.

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It's yours when you've paid for it, simple as that really. :P

Indeed.

You might as well ask 'When will a bank stop asking me for payments on a loan'

50%,75%, paid back? Erm... 100% :unsure: If it's over 25 years It's about 200% paid back, I think?

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Do not be thick sir, please, it is embarrasing!

When you purchase a house it is yours. Where you got the money is immaterial. If you default on a loan you risk bankruptcy. If you put your house as security, then the bank can force you to sell your house to cover the loan. This is all by the by. What is it about this that you find so difficult?

I just robbed a bank. I went round to your house and bought your sister for £500. I own her. Where I got the money from is immaterial.

:rolleyes:

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I own my house outright - the day I paid my mortgage off I went home and I thought to myself - "I own this place, it's mine". I never thought that before when I had a mortgage - I was just a partial owner - in my mind at least.

Then you have suffered unecessarily in the interim.

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Er.... Have you been eating dung again?

Answer the point please. You are wrong. End of story. Get over it. No big deal.

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I went round to your house and bought your sister for £500. I own her. Where I got the money from is immaterial.

:rolleyes:

You got robbed, should have stuck to property. :rolleyes:

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You got robbed, should have stuck to property. :rolleyes:

She is my property. ;)

BTW - Dukes of hazzard on ITV !! Oh pish it is the new version.

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It those that have released their equity and then get into bother that really grinds my gears. I can understand buying into an overhyped market because if your desperate to buy then you've got no choice. But I've no sympathy for those that have treated their house as a cash machine that they can withdraw unlimited wealth from. I hope it was worth it for those that took the plunge ;)

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I get sick of hearing people saying they are going to lose "their" house if the property is repossessed. If it's being repossessed it can't be "their" house - that's the point. Surely until people own at least 50% equity in a property it can't be described as "theirs".

What percentage equity should people own until it's "their" house?

What happens if I take out a mortgage for £1 - do I not own the house? What if I have a big mortgage but at the same time I have twice as much as the purchase price sat in a bank account somewhere? What if I have a rich aunt who pays the mortgage for me as an inheritance tax avoidance? etc

To a large extent it's just splitting hairs.

Legally it's "their" house the moment they purchase it, even with a 100% mortgage (indeed even with 125% mortgage). However, to most intents and purposes it's "theirs" once they have either cleared the mortgage or have the means to do so.

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The equity is free as well.

:lol:

Just let us all know where all the interest rate of 0% mortgages are. And I am not talking about the tiny minority who have some random tracker.

Thanks. ;)

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I get sick of hearing people saying they are going to lose "their" house if the property is repossessed. If it's being repossessed it can't be "their" house - that's the point. Surely until people own at least 50% equity in a property it can't be described as "theirs".

What percentage equity should people own until it's "their" house?

However, 'repossessed' is a misnomer in that the bank or BS never owned the house in the first place. So I use the word 'possessed' usually, with a little explanation.

'That's the point'? - a curious form of argument. The banks and BBs use the word which makes them look like the innocent party in a brutal process - possession (aka 'repossession').

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And you dont pay interest on equity either.

And just how exactly do you obtain this equity..................... :rolleyes:

Clue - INTEREST

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However, 'repossessed' is a misnomer in that the bank or BS never owned the house in the first place. So I use the word 'possessed' usually, with a little explanation.

'That's the point'? - a curious form of argument. The banks and BBs use the word which makes them look like the innocent party in a brutal process - possession (aka 'repossession').

They own the first charge on the property. In reality that is as good as possession. The house belongs to the Bank/BS until the first charge is removed. Anyone who thinks otherwise is living in fantasy land IMO. It is a simple case of one wee bit of legal paper cancelling out another.

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I think of the descriptions in various categories :

0% LTV : Homeowners

1% - 25% LTV : Very prudent property investors

26% - 50% LTV : Leveraged property investors

51% - 75% LTV : Leveraged property speculators

76% - 90% LTV : Highly leveraged property speculators

91% - 100% LTV : Massively leveraged property speculators

> 100% LTV : Insolvent (but possibly liquid in the short term) property speculators

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Surely the point is that the lender has to go to court to gain possession of the house if the borrower defaults on his loan. It is therefore NOT in the ownership of the lender unless a court says so. If the lender had any kind of say, they would have right of access, a set of keys, etc. They have none of this, they are not your landlords.

The borrower obtains a loan to buy the house and it is their's to do with as they please until a court says otherwise. With the permission of planners (NOT the lender, note), they could knock it flat and build something different. The lender would be none the wiser. As long as the payments are made, in my experience, they just mind their own business.

However, have there been any margin calls on home loans yet? The possibility of this was mentioned a lot on here last year.

Edited by deflation

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