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bearwithaconscience

Doomsday Scenario - Total Wipeout

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Here's my question. What would happen if, in the event of a major Japan style crash, our banks did start to go bust? Would they be able to foreclose on my mortgage and demand that I sell my house for whatever the current market value is, say 10k? Does anyone know what did trigger such a major crash in Japan?

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Here's my question. What would happen if, in the event of a major Japan style crash, our banks did start to go bust? Would they be able to foreclose on my mortgage and demand that I sell my house for whatever the current market value is, say 10k? Does anyone know what did trigger such a major crash in Japan?

I don't know the history but found this: http://www.investopedia.com/features/crashes/crashes7.asp

From a quick read of that, greed, as with our current housing situation and a belief that 'it will be different this time', caused a bubble beyond comprehension!

With regard to banks crashing, whilst theoretically, as soon as you house becomes worth less than your outstanding mortgage capital, the banks are able to ask for the amount of negative equity. The would be asking along time before it reduced to only being worth £10K. Can you imagine how bad this would be for IO mortgage holders at the moment!!! Ouch Ouch Ouch.

AFP

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Thanks for that excellent link. It makes v interesting reading.

I particularly liked this extract from the great depression of 1929:

Behavioral finance shows that the less an investor knows, the easier it is for him or her to be swept up in popular opinion (herd mentality). This behavior is a double-edged sword because the ignorant investors are also easily spooked into panic. Both actions, joining and fleeing, have very little basis in the quality of the news or the quality of the market. Instead, the herd follows the cow that runs the fastest, trampling the market.

Looking at some of the previous threads on people taking on IO mortgages for BTL purposes, I would say we are getting there.

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Thanks for that excellent link. It makes v interesting reading.

I particularly liked this extract from the great depression of 1929:

Looking at some of the previous threads on people taking on IO mortgages for BTL purposes, I would say we are getting there.

MMMMMMOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO :P

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  • 301 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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