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tomandlu

Debt Clinic In The Grauniad

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From the Grauniad's debt clinic...

Hallo,

we bought our 2bed flat in July 2007, at the height of the property market, on the basis of a 100% mortage interest only. In the meantime, I lost my job, my husband still has a position in the public sector. We are now planning to move to the continent, as I cannot find a descent job in this country, my husband is happy to commute. We are renting out our property waiting for better times where we might be able to sell without fundamental losses.

Our current rate is 5,2%, the rental we are expecting leaves us with a deficit of 300£ per month.

As houseprices might not improve significantly over the next 2 years, I am wondering what would happen if we simply gave the keys to the bank and leave. What would happen to us, especially to my husband who is still coming back to the country on a regular basis. After all, I do not see why we should pay the bill of mismanagment of the banking sector. They should be made liable for their policies and not us!

What would you advise us to do? Shell we just give up our property?

Paula12

That's got to be a wind-up, hasn't it? Own up, which of you was it?

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the black hole where the Gordon-Brown's world of economic denial meets reality

where actions meet consequences

where playschool meets newsnight

I could go on

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the black hole where the Gordon-Brown's world of economic denial meets reality

where actions meet consequences

where playschool meets newsnight

I could go on

Indeed - her sense that somehow the choices she and her husband made should be without any negative consequences is extraordinary... and then I remember that bankers are still getting bonuses and remember that moral hazard is the new normal...

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There are some mistakes which only an illiterate native speaker would make.

No she's using the European decimal notation, a comma instead of a point. Plus thinks she's more likely to get a job on the continent so almost certainly from there originally. I'm guessing French if they intend to commute.

As for handing the keys back - seems like a good idea to me. A foreign home address deters most legal action.

Of course the formally correct course is to keep a tenant in the property without telling the lender, stop paying the mortgage but oppose all repo legal action, thus pocketing the rent as pure profit. Six to twelve months down the line the first the tenant knows about it is when the locks are changed while he's out. ;)

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No she's using the European decimal notation, a comma instead of a point. Plus thinks she's more likely to get a job on the continent so almost certainly from there originally. I'm guessing French if they intend to commute.

'sounds' like a french speaker with English as 2nd language, not sure why, just seems to

As for handing the keys back - seems like a good idea to me. A foreign home address deters most legal action.

these days, in an EU country with reciprocal agreement,s I'm not so sure... and mortgage companies have medium term history of being VERY patient...

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Of course the formally correct course is to keep a tenant in the property without telling the lender, stop paying the mortgage but oppose all repo legal action, thus pocketing the rent as pure profit. Six to twelve months down the line the first the tenant knows about it is when the locks are changed while he's out. ;)

:lol:

Nothing like a bit of rough and tumble. All in good fun hey! Who knows, if she succeeds in doing it with 1,000 properties she'll be idolised as a modern day robber barron, a symbol of British entrepreneurial success! She'll probably get a ministerial position or at the very least will head a quango, say something like a 'integrity in business review board' type of thing.

Edited by _w_

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It gets better...

Hi' date=' I'm a small state to the North West of Europe. I'm in the Eurozone and things seemed to be going along very nicely for several years. My neighbours wondered how the heck I had managed to shake off my old economic slow lane image. Businesses and workers flocked to me to get a piece of the action. But some poor people in America defaulted on mortgages they should never have been allowed in the first place and before I know it I have a slight problem with debt.I am being offered a really big loan to clear all my debts, you know like the ones you see on the telly - consolidate all your loans into one easily managed monthly payment.I'm not sure if this is too good to be true, can you advise please.I'm tempted to tell my creditors to just feck off and call their bluff but apparently that doesn't go down well with my neighbours.

[/quote']

and

Hello.

I am a european country that is currently paying back 43 billion pounds of interest on my debt a year. I sold off most of my proftable assets and businesses to overseas multinationals and private billionaires some years ago and so can't seem to find a way to stop borrowing' date=' so my interest payments ( and therefore my debt) rise exponentially. http://www.debtbombshell.com/

My problem is, I have lent an enormous amount of money to banks or neighbouring countries ( far in excess of my capital) , in order that they could lend it to other people who would eventually give it back to me at a premium, but this has not worked; the banks gave it to their bondholders, who are the very people to whom I previously sold my assets and whose liquidity sustains the banks. I have attempted to reverse the flow of money out of the country by relaxing laws concerning securitizations, so the bondholders could generate money in the financial markets, and lend it back to me, but again, this has not worked either; rather than keeping it in the banks themselves, they moved it offshore to protect themselves.

I am not alone in this situation . All my neighbouring countries are also in debt, and we regularly trade promisary notes with each other to make it look as if we are richer than we are. This has led a situation in which debt has become, in volume terms, my largest tradeable asset; were I and the markets to stop selling debt, in the form of government bonds and security trades, 90% of economic activity in my country would cease tomorrow.

Perhaps if I stopped giving money to the banks, regulated securitization trades, and somehow forced the banks bondholders ( and the other richest 1% of my population) to keep their money within the banks whose bonds they own, or, failing that, at least within the borders of my country, I could reduce my debt, but the most proftable businesses in my country, who are often linked to the bondholders of the banks, have told me that if I perform any such action they will simply move their assets somewhere else, in which case I would have to borrow even more .

I feel powerless. How can I break this spiral of debt ?

[/quote']

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What made me laugh is the 100% LTV interest only mortgage.

Banks know that there are people out there who are a bit loopy with money, and they should be ok with that. Let them have the money, but make sure they forward a big chunk of equity, so that when they scarper, they leave the house and you can get your money back.

Just why anyone could object to the FSA's proposals on mortgage lending is utterly beyond me.

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No she's using the European decimal notation, a comma instead of a point. Plus thinks she's more likely to get a job on the continent so almost certainly from there originally. I'm guessing French if they intend to commute.

You would make an excellent Belgian detective! ;)

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After all, I do not see why we should pay the bill of mismanagment of the banking sector. They should be made liable for their policies and not us!

Did we have these morons around when the dotcom bubble burst too? Im too young to remember :blink:

And isnt their mortgage their policy

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Hello.

I am a european country that is currently paying back 43 billion pounds of interest on my debt a year. I sold off most of my proftable assets and businesses to overseas multinationals and private billionaires some years ago and so can't seem to find a way to stop borrowing, so my interest payments ( and therefore my debt) rise exponentially. http://www.debtbombshell.com/

My problem is, I have lent an enormous amount of money to banks or neighbouring countries ( far in excess of my capital) , in order that they could lend it to other people who would eventually give it back to me at a premium, but this has not worked; the banks gave it to their bondholders, who are the very people to whom I previously sold my assets and whose liquidity sustains the banks. I have attempted to reverse the flow of money out of the country by relaxing laws concerning securitizations, so the bondholders could generate money in the financial markets, and lend it back to me, but again, this has not worked either; rather than keeping it in the banks themselves, they moved it offshore to protect themselves.

I am not alone in this situation . All my neighbouring countries are also in debt, and we regularly trade promisary notes with each other to make it look as if we are richer than we are. This has led a situation in which debt has become, in volume terms, my largest tradeable asset; were I and the markets to stop selling debt, in the form of government bonds and security trades, 90% of economic activity in my country would cease tomorrow.

Perhaps if I stopped giving money to the banks, regulated securitization trades, and somehow forced the banks bondholders ( and the other richest 1% of my population) to keep their money within the banks whose bonds they own, or, failing that, at least within the borders of my country, I could reduce my debt, but the most proftable businesses in my country, who are often linked to the bondholders of the banks, have told me that if I perform any such action they will simply move their assets somewhere else, in which case I would have to borrow even more .

I feel powerless. How can I break this spiral of debt ?

496007281_bbae733fca_o.jpg

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  • 246 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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