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http://www.bbc.co.uk/news/business-27393494

5th most read story on the BBC website this morning.

A rising number of people are in "debt denial" and fail to seek help for mortgage repayment difficulties, the financial ombudsman has said.

The service said it had received a record number of complaints about mortgages, despite the fact that repossession numbers were falling.

The ombudsman said that it only upheld about a third of complaints.

Some mortgage holders were making unrealistic appeals to lenders and sought help too late, it said.

That'll be your MSE types contacting the Ombudsman trying to claim that their bank had a "duty of care" to make sure they weren't idiots before lending them money.

He added that some homeowners were being unrealistic by asking for debt to be written off or for interest to be suspended indefinitely.

You mean we have to pay it back? Shit just got real....

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What a surprise!


A rising number of people are in "debt denial" and fail to seek help for mortgage repayment difficulties, the financial ombudsman has said.

The service said it had received a record number of complaints about mortgages, despite the fact that repossession numbers were falling.

The ombudsman said that it only upheld about a third of complaints.

Some mortgage holders were making unrealistic appeals to lenders and sought help too late, it said.

More here: http://www.bbc.co.uk/news/business-27393494

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What is the complaint ?

My debt pusher wants me to pay them back ?

I read yesterday that repo's were continuing to fall.

This does not commute,

Edited by TheCountOfNowhere

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Think of their poor families who'll be out on the street. Never mind the renters who could be kicked out on a whim if their landlord wants to sell or doesn't like them

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I think this is a signal. The banks will be 'loosening' their terms of forbearance now the so called recovery is in full swing. The additional throughput at the auctions should take a bit of the heat out in London and the SE.

Expect repo's to rise.

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Sounds like the MMR changes needed to have been brought in even earlier. Who'd a thunk it?

I think this is a signal. The banks will be 'loosening' their terms of forbearance now the so called recovery is in full swing. The additional throughput at the auctions should take a bit of the heat out in London and the SE.

Expect repo's to rise.

I don't know - I wonder if it's just to counter the wave of MSM commentary about how irrelevant, intrusive and bizarre the MMR questions are - obviously an attempt to get it scrapped or watered down. At least we have articles like this to show exactly why MMR is needed.

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</pedant> you dont "repo" a house to collect the mortgage.

Simply uderstanding this legal fact will stop a whole lot of confusion about money as debt and the difference between credit and cash.

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Sounds like the MMR changes needed to have been brought in even earlier. Who'd a thunk it?

About 15 years earlier..

Personally, I think that the bank does have a duty of care, there are plenty of people out there who don't really understand what they are getting into - it's a classic case of information asymmetry leading to market failure. And that market failure hurts everyone (indeed, it hurts the prudent more than the feckless, especially if the feckless end up bailed out).

If strict rules on income multiples, rent coverage and financial stress tests had always been in place, there would have been far less of a bubble.

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Not sure that asking for the interest to be suspended indefinitely is totally unreasonable, I mean look at what the bankers got.

Well funny you should say that:

Now the Irish market has crashed there are very few repos [fact]. What the banks are doing is keeping the debtors in their houses and letting them miss payments so that the payments and interest accrue. They hassle debtors to get what they can from them, to keep the banks ticking over, but under no circumstances do they repo.

After a lifetime of debt repayment the banks end up with all the houses and the debtor has nothing to show. For the banks it may be better than having solvent debtors who will pay them back and own the houses.

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Well funny you should say that:

Now the Irish market has crashed there are very few repos [fact]. What the banks are doing is keeping the debtors in their houses and letting them miss payments so that the payments and interest accrue. They hassle debtors to get what they can from them, to keep the banks ticking over, but under no circumstances do they repo.

After a lifetime of debt repayment the banks end up with all the houses and the debtor has nothing to show. For the banks it may be better than having solvent debtors who will pay them back and own the houses.

That is worrying, considering the Lemming-like level of financial literacy of the average person

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About 15 years earlier..

Personally, I think that the bank does have a duty of care, there are plenty of people out there who don't really understand what they are getting into - it's a classic case of information asymmetry leading to market failure. And that market failure hurts everyone (indeed, it hurts the prudent more than the feckless, especially if the feckless end up bailed out).

If strict rules on income multiples, rent coverage and financial stress tests had always been in place, there would have been far less of a bubble.

It's not like it's a secret that you have to pay back what you borrow.

It's not like interest rates aren't something that are well known and understood.

It's not like it isn't obvious when you borrow 3x,4x,5x,6x your annual salary and secure it against your residence, that it is a very big deal indeed and you should do some serious forethought.

Any adult of sound mind should be considered responsible for their own actions. It's not up to anyone else to stop them being a cretin.

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Well funny you should say that:

Now the Irish market has crashed there are very few repos [fact]. What the banks are doing is keeping the debtors in their houses and letting them miss payments so that the payments and interest accrue. They hassle debtors to get what they can from them, to keep the banks ticking over, but under no circumstances do they repo.

After a lifetime of debt repayment the banks end up with all the houses and the debtor has nothing to show. For the banks it may be better than having solvent debtors who will pay them back and own the houses.

no, they wont end up with all the houses...they will sell them to the very rare buyership.

Shell companies would be great.

To understand this scheme, people need to understand the mechanics of the mortgage "deal".

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Phone in now on Fivelive - Ray Boulger is on.

And me :)

Come on guys, give them a call !

I do sympathise for those hit hard by life - the first man, whose wife had cancer, expressed so well how on's life can suddenly be overturned. Thankfully he and her are OK now.

It was stated (point 1) that the government wanted home ownership to reduce those needing to rent on retirement, then the same person (Ray?) suggested MEW helped the economy! I was able to suggest that I/O mortages and MEW wont help with point 1, and that, in the SE anyway, people are buying not to pay off a mortage but out of fear that their savings will not keep up with HPI

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It's not like it's a secret that you have to pay back what you borrow.

It's not like interest rates aren't something that are well known and understood.

It's not like it isn't obvious when you borrow 3x,4x,5x,6x your annual salary and secure it against your residence, that it is a very big deal indeed and you should do some serious forethought.

Any adult of sound mind should be considered responsible for their own actions. It's not up to anyone else to stop them being a cretin.

In which case, why do we have driving tests? It's not like it's a secret that driving a car badly can get you killed.

And to extend the analogy, the problem isn't the individual in isolation, it's their surroundings and other people. Financially illiterate people stoke bubbles which, in the case of property means that financially literate people are affected; they get into debts they can;t repay which hits their dependents (who have no choice in the matter); and they funnel money to non-productive spivs and speculators.

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On BBC Breakfast this morning, the guy who does the business update after the weather, was genuinely baffled as to why people were struggling, with interest rates so low. BECAUSE THEY BORROWED TOO MUCH YOU *@%$*&% IDIOT, i screamed. I honestly could not believe what i was hearing, from a so called business presenter. His total lack of understanding of the problem was breathtaking.

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.......whatever the lenders do will never be right....they are wrong if they don't lend the money, they are wrong if they ask people that signed a contract to repay that debt to repay their debt.......it is only right that they help with short-term financial problems....but what good is it to anyone to allow interest and debt to compound indefinitely, a line has to be drawn......unaffordable debt commitments is unaffordable when the hole is getting deeper.

When people with more debt that they can reasonably manage to repay say they will lose 'their home'. They will have to rent, renting is what people do when they can't afford to buy, thousands already do it, thousands that earn more money than many house purchasers do rent, they still are not in a position to buy...

What is happening now is the fallout of high housing costs/prices.......housing and rents for a growing number of people is far too high......get real.

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