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Maximus Skepticus

Shared Appreciaton Mortgages (SAMs)

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...not Surface-to-Air-Missiles...but close 😳

I've just learnt a family memebr took on a SAM...I've done some research and sort of understand the crux of it....seems like the banks stooped to some dispicably low predatory loans even well before the sub-prime lending....pretty drastic agreement that some people accepted.

Just wondering if anyone has any up-to-date info...I have wind of some petitioning, is this still current?

Also, thoughts on SAMs, from banks side or mortgagee side? are they at the bottom of the poo pile? Not sure how i/o manage to escape similar fate....surely people taking on SAMs should have been offered i/o's

This is where I start to demonstrate how ill-informed I am....

any thoughts appreciated

MS

Edited by Maximus Skepticus

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never heard of em, but if they involve lots of DEBT issued against piles of bricks I'm sure there'll have been THOUSANDS of victims who didn't know what they were doing but just wanted a piece of the magick money pie

 

me, I just take em (the loans) out, sign em (the mortgage forms) up, then fill em (the props) up with renter scum, then bang em (the rents) up then sit back and watch it (the coin) roll in

 

its pretty straightforward and I have no idea why more don't do this.

 

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Basically punters who had no idea that a colossal wave of HPI coming took a loan for 25% of the value of their house on the condition that when the house was sold they would pay back 75% of the houses market value at the time of sale.This was for a short period around 1998 so it's worked out massively badly for the people who took those mortgages.

"The owner of a £200,000 house in 1998 would sign up to a SAM and be given £50,000 cash. If that house were sold in 2014 for £600,000, the owner would be required to hand over £350,000 to redeem the mortgage - a return of 600 per cent for the bank."

http://www.thisismoney.co.uk/money/mortgageshome/article-5013193/Have-got-shared-appreciation-mortgage.html

Looks like there is a class action type activity going on that might be useful to maximus, though the links in the article are dead for me this evening. 

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17 hours ago, Maximus Skepticus said:

...not Surface-to-Air-Missiles...but close 😳

I've just learnt a family memebr took on a SAM...I've done some research and sort of understand the crux of it....seems like the banks stooped to some dispicably low predatory loans even well before the sub-prime lending....pretty drastic agreement that some people accepted.

Just wondering if anyone has any up-to-date info...I have wind of some petitioning, is this still current?

Also, thoughts on SAMs, from banks side or mortgagee side? are they at the bottom of the poo pile? Not sure how i/o manage to escape similar fate....surely people taking on SAMs should have been offered i/o's

This is where I start to demonstrate how ill-informed I am....

any thoughts appreciated

MS

I'm glad that products like this are coming out. Whenever banks have to start dreaming up exotic forms of financial jiggery-pokery in order to keep their profits up it means that the end to this current madness can't be too far out of sight.

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41 minutes ago, Diver Dan said:

I'm glad that products like this are coming out. Whenever banks have to start dreaming up exotic forms of financial jiggery-pokery in order to keep their profits up it means that the end to this current madness can't be too far out of sight.

I tend to agree with this view.  Its a mark of desperation at some point in the cycle of boom and bust. The latest being taking chunks of equity from one house to help an offspring get on the 'property ladder'.

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  • 302 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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