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Why Are The Banks Not Repossessing?

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Does anyone know why the banks are not repossessing?

What mechanisms are causing this to happen?

Any hard figures on these mecahnisms and their effect?

It seems to me that it would be in their interests to repo if it gets over 6 months. But presumably they can't because they would have to mark the underlying asset at the sale value rather than the loan value.

Why didn't this happen last time round? Are they waiting for inflation to catch up?

Anyone know what's going on?

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Does anyone know why the banks are not repossessing?

What mechanisms are causing this to happen?

Any hard figures on these mecahnisms and their effect?

It seems to me that it would be in their interests to repo if it gets over 6 months. But presumably they can't because they would have to mark the underlying asset at the sale value rather than the loan value.

Why didn't this happen last time round? Are they waiting for inflation to catch up?

Anyone know what's going on?

Processing time + political fallout + balance sheet + being able to hand in crap at the Central Bank = stasis + bonus.

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Processing time + political fallout + balance sheet + being able to hand in crap at the Central Bank = stasis + bonus.

2nd is on its way out, and 4th is being phased out now isn't it? (SLS scheme?)

Surely with house prices on their way up, the balance sheet problem isn't so severe? Unless my theory is correct, which is that lower-end property is still crashing.

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Gordon decided it would be a good election bribe to stop repos. Course, he didnt seem to give a sh1t about the quarter of a million or so reposessed between 1998-2008 though.

What do they care about the balance sheets - I though Snot gobbler swapped the banks crap held on city centre slums for government debt that the taxpayer, unlike the legions of Grant Boveys, will always pay. Surely theyre sorted. We've got the crap, theyve got the good stuff.

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2nd is on its way out, and 4th is being phased out now isn't it? (SLS scheme?)

The political fallout from the 2nd comes from dumping millions of people onto the streets at the same time. The problem with doing that is you either have to find somewhere for them to go (camps or something) so they don't go straight back into the now empty homes they have just left or you accept that not paying to live somewhere becomes the norm for millions.

Neither is going to go down well, one with those in the camps and anyone humane ouside of the camps, the other with those who live as rentiers.

The central bank will never stop printing or accepting crap. At least I can see no reason why they ever would. If they do, all confidence in their magical abilities dies.

Surely with house prices on their way up, the balance sheet problem isn't so severe? Unless my theory is correct, which is that lower-end property is still crashing.

Well let's wipe out the housing side of balance sheets.

What happens to all the money that banks owe others based on it?

Nothing. The banks just become even more obviously insolvent. This is the problem of lending money out of thin air and hoping that the guy you just conned is good for it.

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Banks under instructions from Gordon to delay until he is left. I have heard of cases where mortgages were missed for over 8 months! with no action taken (includes BTL case) another state intervention.

Unbelievable!!! but sadly true.

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The loan is being repaid, its simple really.

300,000 families helped by taxpayer to do just this,

then again, a bank can have its shell buy the defaulter off, recoups the loan and has a share in a successful property company.

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Banks under instructions from Gordon to delay until he is left. I have heard of cases where mortgages were missed for over 8 months! with no action taken (includes BTL case) another state intervention.

Unbelievable!!! but sadly true.

See Anecdotal section: Northern rock..wont repossess. its a shocker !

Question is will the new crew in no.10 say ' continue to avoid repossession'.

I expect they will try to avoid the higher levels of repossession we might otherwise see.

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Does anyone know why the banks are not repossessing?

What mechanisms are causing this to happen?

Any hard figures on these mecahnisms and their effect?

It seems to me that it would be in their interests to repo if it gets over 6 months. But presumably they can't because they would have to mark the underlying asset at the sale value rather than the loan value.

Why didn't this happen last time round? Are they waiting for inflation to catch up?

Anyone know what's going on?

I would have thought that the occupier would want the property to be repossessed if over 3 months in arrears. It's not uncommon to be charged over £100 for a letter telling you you're in arrears. I guess the banks will never see that money so maybe it's a moot point.

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Banks under instructions from Gordon to delay until he is left. I have heard of cases where mortgages were missed for over 8 months! with no action taken (includes BTL case) another state intervention.

Unbelievable!!! but sadly true.

I can personally testify to this. My landlord hasn't paid his mortgage for 7+ months. Result? Suspended posession order with the bank allowing him to keep the flat and add the arrears to his mortgage so long as he keeps up his payments for the next 5 months. That would never have happened 2 years ago. The bank would have just repossessed. He is on an IO mortgage and just keeping afloat due to low interest rates. How many others are in this position?

There will be a tsunami of repossessions once rates go up, even by just 1%.

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The moment all the loans were nationalised, the handling of personal debt was no longer in the realm of business and became a political issue.

I would be interested to know how much the government has paid directly and indierectly to prevent bad loans from going into default. The amounts must be huge, and can only have been justified by a belief that allowing a house price crash would cause a crisis of the same type as the Albanian pyramid fiasco in the 90s, with breakdown of law and order, rioting, and social collapse. I suspect they realised they had to bail out the borrowers and lenders with taxpayer money no matter how much it cost.

Edited by ingermany

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The moment all the loans were nationalised, the handling of personal debt was no longer in the realm of business and became a political issue.

I would be interested to know how much the government has paid directly and indierectly to prevent bad loans from going into default. The amounts must be huge, and can only have been justified by a belief that allowing a house price crash would cause a crisis of the same type as the Albanian pyramid fiasco in the 90s, with breakdown of law and order, rioting, and social collapse. I suspect they realised they had to bail out the borrowers and lenders with taxpayer money no matter how much it cost.

Let house prices crash.

If certain banks get pulled under - tough (it's the shareholders(greed) which didn't stop their banking executives from carrying out stupid lending practices in the first place!)

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I can personally testify to this. My landlord hasn't paid his mortgage for 7+ months. Result? Suspended posession order with the bank allowing him to keep the flat and add the arrears to his mortgage so long as he keeps up his payments for the next 5 months. That would never have happened 2 years ago. The bank would have just repossessed. He is on an IO mortgage and just keeping afloat due to low interest rates. How many others are in this position?

There will be a tsunami of repossessions once rates go up, even by just 1%.

The bank cannot possess the property as its not worth the value of the loan secured on it. The IO mortgage means there is no equity to take. The banks are screwed beyond anything you can imagine. If they start to recover their debts by taking out possession orders the property market will fall and the banks will collapse. Much better to try to get whatever money they can at any rate however slow. In a 0.5% interest environment its not like the delay in payment matters much.

If your neighbour owed you 20 grand and had a 1975 Datsun Cherry as collateral would you rush to take the car off him or accept the 30 quid a week offered as repayment?

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The bank cannot possess the property as its not worth the value of the loan secured on it. The IO mortgage means there is no equity to take. The banks are screwed beyond anything you can imagine. If they start to recover their debts by taking out possession orders the property market will fall and the banks will collapse. Much better to try to get whatever money they can at any rate however slow. In a 0.5% interest environment its not like the delay in payment matters much.

If your neighbour owed you 20 grand and had a 1975 Datsun Cherry as collateral would you rush to take the car off him or accept the 30 quid a week offered as repayment?

Good point. But, crucially, it relies on low interest rates. The bond markets might have something to say about that.

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Good point. But, crucially, it relies on low interest rates. The bond markets might have something to say about that.

The Greek crisis certainly puts base rate rises on the table. Still don't think we'll see it for at least 12 months.

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The bank cannot possess the property as its not worth the value of the loan secured on it. The IO mortgage means there is no equity to take. The banks are screwed beyond anything you can imagine. If they start to recover their debts by taking out possession orders the property market will fall and the banks will collapse. Much better to try to get whatever money they can at any rate however slow. In a 0.5% interest environment its not like the delay in payment matters much.

If your neighbour owed you 20 grand and had a 1975 Datsun Cherry as collateral would you rush to take the car off him or accept the 30 quid a week offered as repayment?

In other words the banks have been protected from the consequences of their lending decisions, and borrowers who can't afford their loans have been given an indefinite repayment holiday, all funded by the rest of us. I'm nearly 50, and I can't ever remember financial goalposts being moved so dramatically and in such a partisan way....to such detriment to one section of the population, in order to reward the financial irresponsibility of another.

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In other words the banks have been protected from the consequences of their lending decisions, and borrowers who can't afford their loans have been given an indefinite repayment holiday, all funded by the rest of us. I'm nearly 50, and I can't ever remember financial goalposts being moved so dramatically and in such a partisan way....to such detriment to one section of the population, in order to reward the financial irresponsibility of another.

Got it in one :angry:

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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