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Guest Charlie The Tramp

Mortgage Possession Statistics

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soundbite

In the first quarter of 2006 the number of actions entered rose by 29% from those

in the first quarter of 2005. For the same period, figures show a rise of 57% in

orders made (50% of orders made were suspended – compared to 56% in the first

quarter of 2005).

sound's significant to me, but am going to read through in more detail so i don't look like an idiot

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Orders Made (Local Authority and Private) up from 6,126 (Q1 05) to 10,923 (Q1 06).

Up 78%. Enough said.

Edited by Jason

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QUOTE

The Department for Constitutional Affairs today publishes figures for mortgage and

landlord possession actions entered in the county courts of England and Wales for

the first quarter of 2006.

Does Landlord posession action mean that landlords evict tenants, or, that their BTL investments are reposessed?

Also, in the first document, what is the difference between the two categories?

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Guest Charlie The Tramp

Does Landlord posession action mean that landlords evict tenants, or, that their BTL investments are reposessed?

Also, in the first document, what is the difference between the two categories?

Maybe you should email the DCA, I find they are most helpful.

Department Of Constitutional Affairs

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We are seeing the rapid unwinding of the great "Miracle Economy." HPI and MEW based on borrowing with IR going skyward will soon send a signal to the currency markets that sterling is no longer the world's star currency.

With hikes coming this summer, according to some economists and the Bond market, the rate of insolvency and re-possession should reach frenzy point very soon. Gordon's days may be numbered. :)

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Up up and away!

Time to buy those debt free direct shares?

I think you may be correct. :)

As quoted in today's Evening Standard: "DebtFreeDirect yesterday said it expects profits to soar this year afer a 130% increase in first quarter business. Its shares have soared ninefold, valuing it at £165 million, since it floated in 2002"

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Guest

Liverpool way up!!!

liverpool_q1.jpg

Tb

Man U forever.

Also - I have this image of SARAH BEENY slipping on her newly laminated wood floor, and these two "golden arch" silhouettes pointing skyward...

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Something that I’m trying to get my head around:

Mortgage approvals up?

Repossessions up?

From the attachment:

Explanatory Notes

6. The mortgage possession figures do not indicate how many houses have been

repossessed through the courts; not all the orders will have resulted in the issue

and execution of warrants of possession.

. Order Made . The court, following a judicial hearing, may grant an order for

possession immediately . this entitles the claimant to apply for a warrant to have

defendant evicted. however, even where a warrant for possession is issued, the parties

can still negotiate a compromise to prevent eviction.

Does this indicate that negotiations between lender and landlord and/or homeowner,

could filter into the stats of new mortgage approvals?

I'm not suggesting it’s the main reason, but might it not be skewing the figures slightly?

Or would they be classed as re-mortgages (which aren't included in mortgage approvals)

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Bankruptcy, insolvency and repossessions are the dirty little secrets of Gordon's HPI-MEW based "Miracle Economy." Since nothing in life is free the true cost is being kept out of the headlines as much as possible. When is the last time the Daily Excess published a headline "HPI and MEW Destroying Lives of Millions?"

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Bankruptcy, insolvency and repossessions are the dirty little secrets of Gordon's HPI-MEW based "Miracle Economy." Since nothing in life is free the true cost is being kept out of the headlines as much as possible. When is the last time the Daily Excess published a headline "HPI and MEW Destroying Lives of Millions?"

The Mirror (Labours old flagship paper) have no qualms in reporting bankruptcies at a record level.

See article.

6 May 2006

BANKRUPTS 'AT HIGHEST LEVEL EVER'

By Clinton Manning Business Editor

A RECORD 100,000 people will go bankrupt this year, experts warned yesterday.

The alert came after a 73 per cent rise in insolvencies in the first three months of 2006 to 23,000.

And nearly 22,000 court orders were made to repossess homes in the first quarter - a 29 per cent rise.

Steve Treharne of accountants KPMG said bankruptcies rose at their fastest rate for 15 years.

He said: "We saw a big increase in people calling financial help lines. The availability of credit has been rising for a while."

Peter Sargent of debt experts R3 said: "People want to spend, spend, spend without realising the consequences."

The Council of Mortgage Lenders said 11,000 will lose homes this year, up 10 per cent, due to interest rate rises in 2004.

Firm bankruptcies also rose by 17 per cent in the first quarter to 3,439, raising unemployment fears.

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Guest Charlie The Tramp

Firm bankruptcies also rose by 17 per cent in the first quarter to 3,439, raising unemployment fears.

The second quarter is just as bad. The list is just as long for each fortnightly session.

Companies Winding Up Court

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Guest Charlie The Tramp

Does Landlord posession action mean that landlords evict tenants, or, that their BTL investments are reposessed?

Also, in the first document, what is the difference between the two categories?

I emailed the DCA and have just received this reply.

*******- you emailed our General Enquiries web address asking whether the

"possession stats mean that landlords seek possession of the property from a

tenant or that their properties are subject to possession applications by

their lenders".

The recently published mortgage possession statistics relate to possession

actions where "a mortgagee seeks possession of land which consists of or

includes residential property" (as defined in the Civil Procedure Rules).

The figures therefore relate to "lenders" who are applying to recover the

property rather than landlords seeking possession of property from a tenant.

Looking at the National figures we have for Landlords:

Actions Entered 38,240

Suspended Orders 14,820

Orders Made 9,829

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Up 78%. Enough said.

It's worth saying that these percentages are from a low base, because mortgage posessions even in the late 1990s were many more times that.

Still, the trend is very clear.

When this particular bubble unwids I would expect every street in Britain to be affected by a repossession.

The irresponsible lending practices of the last few years have seen to that, and will have already sealed the fate of hundreds of thousands of people.

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It's worth saying that these percentages are from a low base, because mortgage posessions even in the late 1990s were many more times that.

That's true - but it's also at a time when interest rates are very low - if all was well surely repo's shouldn't be rising steeply now . - If Interest rates get ratched up a couple of clicks it's gonna get messy

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A RECORD 100,000 people will go bankrupt this year, experts warned yesterday.

Oh, come on guys, you're all letting the side down. Can't we 'spin' this any better?

A CITY THE SIZE OF CAMBRIDGE WILL GO BANKRUPT THIS YEAR experts warned yesterday.

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Orders Made (Local Authority and Private) up from 6,126 (Q1 05) to 10,923 (Q1 06).

Up 78%. Enough said.

QUOTE

*******- you emailed our General Enquiries web address asking whether the

"possession stats mean that landlords seek possession of the property from a

tenant or that their properties are subject to possession applications by

their lenders".

The recently published mortgage possession statistics relate to possession

actions where "a mortgagee seeks possession of land which consists of or

includes residential property" (as defined in the Civil Procedure Rules).

The figures therefore relate to "lenders" who are applying to recover the

property rather than landlords seeking possession of property from a tenant.

So now this is clarified, the picture is; banks realising that they have made a big mistake on BTL with increasing numbers of new landlords and recovering the property to dump it quick. How long before they pull the plug on BTL lending altogether if they the penny is dropping just how badly they could get burnt during a correction?

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Guest Charlie The Tramp

So now this is clarified, the picture is; banks realising that they have made a big mistake on BTL with increasing numbers of new landlords and recovering the property to dump it quick. How long before they pull the plug on BTL lending altogether if they the penny is dropping just how badly they could get burnt during a correction?

So could we interpet these figures as ?:

Actions Entered 38,240 ( Number of Landlords in trouble )

Suspended Orders 14,820 ( Landlords attempting to come to an agreement with the lender )

Orders Made 9,829 ( Landlords repossessed )

And this for one quarter only. :(

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So could we interpet these figures as ?:

Actions Entered 38,240 ( Number of Landlords in trouble )

Suspended Orders 14,820 ( Landlords attempting to come to an agreement with the lender )

Orders Made 9,829 ( Landlords repossessed )

And this for one quarter only. :(

That's the way I'm reading it.

Banks probably aren't yet loosing money as they should have a 10-20% buffer but Landlord deposits must be going up in smoke.

What's the average deposit on a BTL? £15K? So in one quarter there are nearly 40,000 properties where they are in trouble and at risk of loosing the deposit (10,000 already have). Thats approx £600,000,000 at risk in deposits alone if my assumptions are correct in 3 months!

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