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Repossession In My Old Street

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I know that this could be an isolated example, but it's interesting nonetheless.

In the street where I used to rent a house there was someone who lived in a house across the street and she had, like us, moved in from London a few months before we had and was making the same extreme commute. Unlike us she had bought her house and was fairly bullish on property (to such an extent that we avoided talking on the subject if we met on the train or on the walk home from the station).

Any way she lost her job, also around the same time that I did and found it hard to find another job (I got a job quickly, but with a whopping pay cut).

After moving out of the street last year my wife or I saw her every couple of months and with no idea that there was much amiss, and as I saw her a couple of times at the station I assumed that her financial situation had stabilised.

Yesterday my wife talked to a couple of our friends who happen to be her next door neighbour. Well she came back home last week to find that the locks had changed and there was an eviction notice. She knocked on my friend's door and in a very matter of fact way she explained that she had been evicted, that she hadn't opened any letters from the bank for the last six months or so and that this was probably the best thing that had happened to her. She also said that this was the probably best thing that had happenedd and that she had some equity in the house (I must stress that I'm reporting the opinion not the fact).

Perhaps she's an extreme example, or perhaps the banks are getting tougher to shore up their capital position. Any ideas?

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I know that this could be an isolated example, but it's interesting nonetheless.

In the street where I used to rent a house there was someone who lived in a house across the street and she had, like us, moved in from London a few months before we had and was making the same extreme commute. Unlike us she had bought her house and was fairly bullish on property (to such an extent that we avoided talking on the subject if we met on the train or on the walk home from the station).

Any way she lost her job, also around the same time that I did and found it hard to find another job (I got a job quickly, but with a whopping pay cut).

After moving out of the street last year my wife or I saw her every couple of months and with no idea that there was much amiss, and as I saw her a couple of times at the station I assumed that her financial situation had stabilised.

Yesterday my wife talked to a couple of our friends who happen to be her next door neighbour. Well she came back home last week to find that the locks had changed and there was an eviction notice. She knocked on my friend's door and in a very matter of fact way she explained that she had been evicted, that she hadn't opened any letters from the bank for the last six months or so and that this was probably the best thing that had happened to her. She also said that this was the probably best thing that had happenedd and that she had some equity in the house (I must stress that I'm reporting the opinion not the fact).

Perhaps she's an extreme example, or perhaps the banks are getting tougher to shore up their capital position. Any ideas?

UK Government and UK banks are one and the same thing.

There will be no repos until the UK state fails.

Printy printy all the way = no nominal price crash

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in a very matter of fact way she explained that she had been evicted, that she hadn't opened any letters from the bank for the last six months or so

I don't understand how people can do this and still have self-respect

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UK Government and UK banks are one and the same thing.

There will be no repos until the UK state fails.

Printy printy all the way = no nominal price crash

I agree to a certain degree ,but I know two couples who are going through repossession ,not because they were unable to pay the mortgage ,it was just a case of if they did they were left with no disposable income and said they are prisoner`s in their own home and pay for the privilege

They bought at peek with a NR 100% mortgage ,so they decided to stop paying the mortgage almost 12months ago in one case and have just been given another 2 months to pay £x or be evicted ,they have no intention of doing so as they see it as having lived for 12 months rent free and have got nothing to loose as they did not put a penny of their own money down to buy the place

There is nothing the banks or government can do with the people who choose not to pay the only option is to repossess and when interest rates start to rise I can see more and more choosing this option especially those who bought at peek with 100%+ mortgages

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UK Government and UK banks are one and the same thing.

There will be no repos until the UK state fails.

snip

well, apart from the 1000 per week that are going ahead.

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I agree to a certain degree ,but I know two couples who are going through repossession ,not because they were unable to pay the mortgage ,it was just a case of if they did they were left with no disposable income and said they are prisoner`s in their own home and pay for the privilege

They bought at peek with a NR 100% mortgage ,so they decided to stop paying the mortgage almost 12months ago in one case and have just been given another 2 months to pay £x or be evicted ,they have no intention of doing so as they see it as having lived for 12 months rent free and have got nothing to loose as they did not put a penny of their own money down to buy the place

There is nothing the banks or government can do with the people who choose not to pay the only option is to repossess and when interest rates start to rise I can see more and more choosing this option especially those who bought at peek with 100%+ mortgages

They act as if they do not owe anything after being 'repossessed'. They will owe the negative equity or shortfall after the bank sells the house/flat.

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They act as if they do not owe anything after being 'repossessed'. They will owe the negative equity or shortfall after the bank sells the house/flat.

+1

plus the eviction and legal fees

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I agree to a certain degree ,but I know two couples who are going through repossession ,not because they were unable to pay the mortgage ,it was just a case of if they did they were left with no disposable income and said they are prisoner`s in their own home and pay for the privilege

They bought at peek with a NR 100% mortgage ,so they decided to stop paying the mortgage almost 12months ago in one case and have just been given another 2 months to pay £x or be evicted ,they have no intention of doing so as they see it as having lived for 12 months rent free and have got nothing to loose as they did not put a penny of their own money down to buy the place

There is nothing the banks or government can do with the people who choose not to pay the only option is to repossess and when interest rates start to rise I can see more and more choosing this option especially those who bought at peek with 100%+ mortgages

Largish deposits are essential to prevent this happening, I can also see many with zero equity and nothing put down in the first place just walking away, a 2% rise in base rates will be catastrophic at the moment.

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UK Government and UK banks are one and the same thing.

There will be no repos until the UK state fails.

Printy printy all the way = no nominal price crash

Oh to live in a world where the bond markets don't terrify governments. In the UK we are different from the rest of the world as investors buy gilts so they feel good where they buy it for the safe after inflation yield for every other country in the world.

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They act as if they do not owe anything after being 'repossessed'. They will owe the negative equity or shortfall after the bank sells the house/flat.

unless the bank does a deal and sells the place for the cost of the outstanding to a shell.

or she goes Bankrupt.

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An update.

The house is listed for £89.000. She bought the house about eight years ago for £85,000. Now presuming that she had some deposit and was on a repayment plan (quite likely eight years ago), that there is an uplift in the auction from the listed price and that she did not borrow against the house value (this is far less certain) then she may well have had equity in the house. That makes me wonder why she did not manage to get it remortgaged to save from repossession, as even if she didn't have a steady income she would probably have had some equity.

Anyway there is quite a lot of interest in the house apparantly, and I think that the price tag has a lot to do with it as it is very low for the area. It looks to me like it's being priced to start a bidding war.

I'm also getting the feeling that she was repossessed because there was equity in the house.

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I'm also getting the feeling that she was repossessed because there was equity in the house.

I am not aware that records on equity in repossessed homes are made public but they would make interesting reading. We can be certain that banks are aware of equity in homes of those struggling and that they will target profitable repossessions, sucking up such equity into costs to carry out the repossessions and subsequent sales. There is no such motivation to repossess the over leveraged.

They have cut off one route of retreat for those in this situation by loading up interest rates on remortgages.

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Her first mistake was not facing up to the situation by simply ignoring the letters. It's in everyone’s best interest (lender included) that the 'home-owner' doesn't default. By effectively refusing to engage with them she basically allowed herself to get sucked into 'the system' where a computer system just goes through a series of predefined steps culminating in repossession.

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I am not aware that records on equity in repossessed homes are made public but they would make interesting reading.

There is some evidence that this is the case .. My little sister works for a local authority, she is the "first stop" for people becoming homeless. Although in theory getting repo'd due to not paying the mortgage is making yourself "Intentionally homeless", The reality is that if you have a family the council will house you ..

Usually she will just pay the arrears, but before she does will "do a deal" with the lender .. Usually it's very easy .. "forgive the penalties .. reduce the interest rate to 3%, borrower agrees to open all mail etc etc .." Borrower leaves her office very pissed off (they had wanted a council house) and lender has staved off another massive loss ..

Anything more than 10% equity in the house and there is no possibility of a deal. It's every penny owed, Interest rates of 7.5-8% and penalties on penalties .. basically it's impossible to keep them in the house ..

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There is some evidence that this is the case .. My little sister works for a local authority, she is the "first stop" for people becoming homeless. Although in theory getting repo'd due to not paying the mortgage is making yourself "Intentionally homeless", The reality is that if you have a family the council will house you ..

Usually she will just pay the arrears, but before she does will "do a deal" with the lender .. Usually it's very easy .. "forgive the penalties .. reduce the interest rate to 3%, borrower agrees to open all mail etc etc .." Borrower leaves her office very pissed off (they had wanted a council house) and lender has staved off another massive loss ..

Anything more than 10% equity in the house and there is no possibility of a deal. It's every penny owed, Interest rates of 7.5-8% and penalties on penalties .. basically it's impossible to keep them in the house ..

No surprise but scary!

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Her first mistake was not facing up to the situation by simply ignoring the letters. It's in everyone’s best interest (lender included) that the 'home-owner' doesn't default. By effectively refusing to engage with them she basically allowed herself to get sucked into 'the system' where a computer system just goes through a series of predefined steps culminating in repossession.

head-in-sand.jpg

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There is some evidence that this is the case .. My little sister works for a local authority, she is the "first stop" for people becoming homeless. Although in theory getting repo'd due to not paying the mortgage is making yourself "Intentionally homeless", The reality is that if you have a family the council will house you ..

Usually she will just pay the arrears, but before she does will "do a deal" with the lender .. Usually it's very easy .. "forgive the penalties .. reduce the interest rate to 3%, borrower agrees to open all mail etc etc .." Borrower leaves her office very pissed off (they had wanted a council house) and lender has staved off another massive loss ..

Anything more than 10% equity in the house and there is no possibility of a deal. It's every penny owed, Interest rates of 7.5-8% and penalties on penalties .. basically it's impossible to keep them in the house ..

so if you a MEW f*cktard you get to keep your house on a preferential interest rate and otherwise you're screwed

scary

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  • 311 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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