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Hot News: C M L Discussing Plans For Mass Repossessions

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http://www.citywire.co.uk/News/NewsArticle...&NewsPage=2

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Reports that the Council of Mortgage Lenders have met to discuss the matter of auctioning repossessed properties point towards preparations being put in place to deal with the perceived glut of properties where rental income is insufficient to cover mortgage repayments. Grandin believes that many of these are novice landlords with 100% mortgage deals.

The CML are getting ready, the question for BTLers is: are YOU ready????

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http://www.citywire.co.uk/News/NewsArticle...&NewsPage=2

.../

Reports that the Council of Mortgage Lenders have met to discuss the matter of auctioning repossessed properties point towards preparations being put in place to deal with the perceived glut of properties where rental income is insufficient to cover mortgage repayments. Grandin believes that many of these are novice landlords with 100% mortgage deals.

The CML are getting ready, the question for BTLers is: are YOU ready????

They're like vultures waiting in the wings. It'll be the same as the last crash. All the Banks will be immune through their Mortgage Indemnity Guarantees (paid for by the punter mugs).

If we assume that most BTLers are probably middle aged it's going to cause some pretty restless nights. It's real easy to start again when you're in your early 20s but not so easy when you're old enough to see your pension and savings evaporate (at best). :(

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BTLers need to get out now before it's too late.

They wont,

They're in it for the long term, holding out for a 20k capital gain in 15years time, which time will have eroded the value of that capital gain by then. Meanwhile, they've subsidised to the tune of 100k over the years as the rental wont meet the costs.

Great Business sense! (not)

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Reports that the Council of Mortgage Lenders have met to discuss the matter of auctioning repossessed properties point towards preparations being put in place to deal with the perceived glut of properties where rental income is insufficient to cover mortgage repayments. Grandin believes that many of these are novice landlords with 100% mortgage deals.

That almost smacks of collusion to ensure properties are entered for sale at a certain level to limit losses for the lenders.

IMHO B)

Hope the FSA are watching.

D :ph34r:

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They're like vultures waiting in the wings. It'll be the same as the last crash. All the Banks will be immune through their Mortgage Indemnity Guarantees (paid for by the punter mugs).

For the slightly less informed amongst us i.e me, can you enlighten me as to what Mortgage Indemnity Gaurantees are ? How do they protect the bank and who is left holding the can ? Say a house is repossesed and sells for 30% less than the outstanding mortgage on it - who takes the hit ? I thought it would be the bank but you seem to be saying it would be the insurer ? Who are these insurers and are they stark staring mad ?

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For the slightly less informed amongst us i.e me, can you enlighten me as to what Mortgage Indemnity Gaurantees are ? How do they protect the bank and who is left holding the can ? Say a house is repossesed and sells for 30% less than the outstanding mortgage on it - who takes the hit ? I thought it would be the bank but you seem to be saying it would be the insurer ? Who are these insurers and are they stark staring mad ?

If you owe 100k on a home and it is repossessed and then sold at auction for 50k, you still owe the bank the difference - even though it is the bank that has chosen to accept 50k for it.

Mortgage Indemnity Insurance covers the lender not the owner for that shortfall - but the bank can still pursue you for the difference for up to 12 years.

This type of product is usually compulsory for those who borrow above a certain amount (95% plus, sometimes 80% plus) or want to borrow more than they can normally borrow.

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Mortgage Indemnity Insurance covers the lender not the owner for that shortfall - but the bank can still pursue you for the difference for up to 12 years.

And if we get the biggest house price crash the country has ever seen, why do you think the insurers won't go bust? Or, more precisely, that the people they've sold the risk on to through derivatives won't go bust?

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And if we get the biggest house price crash the country has ever seen, why do you think the insurers won't go bust? Or, more precisely, that the people they've sold the risk on to through derivatives won't go bust?

A bit worrying if that happens, seeing as pension funds are big buyers of MBS,

no house, no pension, and bank chasing you for outstanding debt.

What a wonderful world we live in.

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That almost smacks of collusion to ensure properties are entered for sale at a certain level to limit losses for the lenders.

IMHO B)

Hope the FSA are watching.

D :ph34r:

That's a very good point. I wonder if there is anytying one can do to alert them. I don't suppose me sending the article to the FSA will do any good. However if the banks are looking to hold up prices, surely that's illegal.

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A bit worrying if that happens, seeing as pension funds are big buyers of MBS,

no house, no pension, and bank chasing you for outstanding debt.

What a wonderful world we live in.

There are bears and bears but this is positively grizzly.

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BTLers need to get out now before it's too late.

The problem is they cant, even if they sell the property, someone will be left holding the keys

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The problem is they cant, even if they sell the property, someone will be left holding the keys

Exactly. The only way the average BTL can get out is by selling at a big discount to someone else who thinks they're getting a bargain... _someone_ has to end up holding all those empty 'executive apartments' that are blighting our towns and cities.

They're sinking on the BTLtanic, and there aren't enough lifeboats for more than a fraction of the passengers.

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They're sinking on the BTLtanic, and there aren't enough lifeboats for more than a fraction of the passengers.

097fig.png

There's plenty of boats around, nobody saw the water fall ahead!!

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"That's a very good point. I wonder if there is anytying one can do to alert them. I don't suppose me sending the article to the FSA will do any good. However if the banks are looking to hold up prices, surely that's illegal."

It doesn't matter what the CML want really. All they can do at an auction is put in a guide price and a reserve. If no bids meet the reserve they can come back next week and try again. Pretty soon they will take whatever is offered, or go into the property management business.

http://www.housepricecrash.co.uk/forum/sty...icons/icon6.gif

Edited by Dubai

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Exactly. The only way the average BTL can get out is by selling at a big discount to someone else who thinks they're getting a bargain... _someone_ has to end up holding all those empty 'executive apartments' that are blighting our towns and cities.

They're sinking on the BTLtanic, and there aren't enough lifeboats for more than a fraction of the passengers.

As far as I can see HPI sentiment is still strong especially between FTBs that I know (those 'just on' and' trying to get on' the ladder). If the BTL scumbags make a dash for it now it will be the FTB sheeple that are holding the keys when the whole thing implodes.

Stress and tears - we aint seen nothin yet :lol:

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A bit worrying if that happens, seeing as pension funds are big buyers of MBS,

no house, no pension, and bank chasing you for outstanding debt.

What a wonderful world we live in.

Have I understood this correctly - in the event of a bust in the housing market the people picking up the tab will be the people who the insurers sold the risk onto i.e hedge funds / pension funds ?

This just gets better and better - so now our pension funds have been used to prop up the housing market and will liek as not be wrecked when it all goes pop. I hate the city and I hate Gordon Brown - time for a riot my friends - lets torch the city and cleanse the place of the rats that live there.

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Have I understood this correctly - in the event of a bust in the housing market the people picking up the tab will be the people who the insurers sold the risk onto i.e hedge funds / pension funds ?

This just gets better and better - so now our pension funds have been used to prop up the housing market and will liek as not be wrecked when it all goes pop. I hate the city and I hate Gordon Brown - time for a riot my friends - lets torch the city and cleanse the place of the rats that live there.

images.jpg

post-7749-1180289547_thumb.jpg

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