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Time to pay off the mortgage - forced sell

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A very good friend of mine told me last night he has to sell his house. The deal was some sort of interest only mortgage, whereby he has to pay of the capital at the end of the term.

He's 59 years old, he's 100k short. Like so many working people his income has dropped probably by about 40% over the last 15 years, and he lost money with his investments during the credit crunch (50k invested in commercial property schemes [[scams]]).

He has no choice, doesn't want to move but has to sell.

I wonder how many more forced sales are about to come on the market?

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I heard about a friend of a friend in a similar situation only yesterday.  Apparently they have £300,000 mortgage with a falling income.  The house cost £500,000 but they won't sell below £650,000 because 'its worth it'....not a sniff apparently.  I suspect there are many individuals and families in this situation.

Falling incomes, inflation taking off, the £ on a downward trajectory and the possibility of interest rates rising; what could possibly go wrong?

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I'm hunting a particular type of house at the moment - there are a few around my neck of the woods. All are approximately 30-50% overpriced because someone will pay that amount. The remarkable thing is that all of them have been sat on the market for 2+ years with zero interest due to greed.

I know 2 of them are in exactly the situation above but one at least has added enough additional loans on that they are going to walk away at best with nothing.

Edited by eek

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We were looking for a bigger house for my Mother-in-law (we actually squat regularly  at her house for convenience / help with the kids, the missus is Asian, what a fantastic system, I'm loving it!!!) who is after a bigger house to accommodate us all. I am staggered, most of the houses on the market are people who clearly bought late 1970s / early 1980s, haven't made any modifications, and now expect their houses (that will need a complete overhaul) to fund a very lavish retirement. Their naivety is amazing, they really are expecting someone to just snap it up overnight, and look confused when they see the reaction on our faces looking at the state of their house.

Inflation is just around the corner. Cheap lending is just about to end. Mother-in-law is a cash buyer trading up, just as prices are about to start coming down. This glut of forced sellers due to interest only mortgages looks certain to help with this. No doubt plenty of idiots will be invited to talk on state media about the crisis of falling prices, and how we need to stop them falling. However, I look forward to the move, thank you very much!!! 

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