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Realistbear

Subprime Lenders Are Putting People On The Street

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http://observer.guardian.co.uk/cash/story/0,,2121159,00.html

Stiff loan deals put debtors on the streets

Remortgage offers from fringe lenders are only driving up repossessions, reports Jill Phillip
Sunday July 8, 2007
The Observer
Growing numnbers of people are seeing their dreams of home ownership dissolve into the nightmare of repossession after taking out large mortgages from sub-prime lenders in order to consolidate unsecured debts.
Figures from the Council of Mortgage Lenders show that
repossessions are at their highest level for seven years,
having risen from 10,310 in 2005 to 17,000 in 2006, and research from Shelter reveals that a disproportionate number of recent repossessions have been initiated in the sub-prime sector, often on remortgages arranged to cover other debts.
Suman Antcliffe, a manager with Citizens Advice in east Staffordshire, reckons she now sees at least one client a month threatened with repossession. 'There has been a sizeable increase in mortgage repossessions, particularly in the past couple of years,' she says.
'But there has also been a change in the reasons for repossession. In the Nineties, problems tended to be caused by unemployment or illness; now many people have become overwhelmed by unmanageable debts secured on a property.'

Wow.................. :o

I have never read as much bearishness in the press for years and years. IMO, Great Crash 2 is going to pick up a hideously rapid rate of momentum in the days ahead. Watch for flood of for sales and Gordon deperately trying to rescue his legacy with "deals" for FTBs and tax breaks for BTLers.

The number of repossession and the trend line is a key indicator of a crash. The VIs can publish all the spun data of HPI they like but they can't beat the market.

Edited by Realistbear

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http://observer.guardian.co.uk/cash/story/0,,2121159,00.html

Stiff loan deals put debtors on the streets

Remortgage offers from fringe lenders are only driving up repossessions, reports Jill Phillip
Sunday July 8, 2007
The Observer
Growing numnbers of people are seeing their dreams of home ownership dissolve into the nightmare of repossession after taking out large mortgages from sub-prime lenders in order to consolidate unsecured debts.
Figures from the Council of Mortgage Lenders show that
repossessions are at their highest level for seven years,
having risen from 10,310 in 2005 to 17,000 in 2006, and research from Shelter reveals that a disproportionate number of recent repossessions have been initiated in the sub-prime sector, often on remortgages arranged to cover other debts.
Suman Antcliffe, a manager with Citizens Advice in east Staffordshire, reckons she now sees at least one client a month threatened with repossession. 'There has been a sizeable increase in mortgage repossessions, particularly in the past couple of years,' she says.
'But there has also been a change in the reasons for repossession. In the Nineties, problems tended to be caused by unemployment or illness; now many people have become overwhelmed by unmanageable debts secured on a property.'

Wow.................. :o

I have never read as much bearishness in the press for years and years. IMO, Great Crash 2 is going to pick up a hideously rapid rate of momentum in the days ahead. Watch for flood of for sales and Gordon deperately trying to rescue his legacy with "deals" for FTBs and tax breaks for BTLers.

The number of repossession and the trend line is a key indicator of a crash. The VIs can publish all the spun data of HPI they like but they can't beat the market.

..............This is to much...............I think I've just messed up me trousers! :blink:

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repossessions are at their highest level for seven years, having risen from 10,310 in 2005 to 17,000 in 2006, and research from Shelter reveals that a disproportionate number of recent repossessions have been initiated in the sub-prime sector, often on remortgages arranged to cover other debts.

err why is this data a year old?

Edited by DoctorJ

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Guest Bart of Darkness
I have never read as much bearishness in the press for years and years.

It seems to be the dominant theme these last few months.

And this is only the start.

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err why is this data a year old?

Perhaps the reposession rate is now a state secret? :ph34r:

Its perhaps the most chilling aspect of the crash imaginable. I think we have turned the corner now and the news is just going to get uglier and uglier. Bit depressing really, but I do look forward to being able to buy a decent house without a massive mortgage.

A friend "sold" their house about 8 weeks ago but their buyer pulled out just before exchange. Its back on the market and they have had zero interest for weeks. It had "sold" in a couple of weeks when last marketed. They were going to STR but I fear they have lost it all now. The window of opportunity to get out before the storm hits is slamming shut.

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err why is this data a year old?

Because it's got to a state now where it's just soooooooooo embarassing to say the real figures :lol: .

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Because they can't quote 2007 figures yet as a total for comparison .

right ok. cheers DS

interesting as this news is - its still out of date. Now repo data for the first half of 2007 would be exciting to see.

hmm I wonder what a good guess would be..........24000 repos for 2007??

Edited by DoctorJ

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err why is this data a year old?

Because RB (and the Observer) is posting six month old headlines as if it was new news.

This was discussed in depth much earlier in the year.

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I think so far it's about the same as last year. Still, RB never lets facts get in the way of an old story.

Basil Fawlty mode switched on:

OOps, so sorry, you are absolutely right, the article was a year old, my fault...obviously

Here it is again:

http://observer.guardian.co.uk/cash/story/0,,2121159,00.html

Stiff loan deals put debtors on the streets
Remortgage offers from fringe lenders are only driving up repossessions, reports Jill Phillip
Sunday July 8, 2007
The Observer

Right--there you are you see, I was wrong all the time the article was dated July the 8th 2007 and not 2006.

No that's not right either --I was right--you were wrong.

A one and a two and a three:

AWOOGA!

"Bear" exposed as a stealth neither!

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Stiff loan deals put debtors on the streets
Remortgage offers from fringe lenders are only driving up repossessions, reports Jill Phillip
Sunday July 8, 2007
The Observer

Right--there you are you see, I was wrong all the time the article was dated July the 8th 2007 and not 2006.

No that's not right either --I was right--you were wrong.

A one and a two and a three:

AWOOGA!

"Bear" exposed as a stealth neither!

If you actually read what people said, they said the data - and therefore the story - was old news, not the date of publication. The data discussed was for 2006, which was released about 3 months ago. The latest figures for 2007 show no great increase on last year, if memory serves.

Call me a neither if you like, I don't care. Keep taking the pills.

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Subprime Lenders Are will be Putting People On The Street, in probably large numbers.

Has anybody heard the story about the boy that cried wolf?

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I have just completed my own research on this factor on the CML website.

its very interesting things are getting very risky for lenders. Not a place I would be putting my money at the moment.

Im going to briefly summarise:-

- Income multiples at the highest levels never seen before 3.14 x income. 88-93 was only 2.3,

- Increase in salary levels being priced out, the average homeowner salary standing at £40k.

- Less Mortgagee's taking PPI on the their new mortgages down from 44% 2004 to 22% in 2007

- Huge increase in the number of people opting for no specified repayment vehicle for interest only mortgages.

- New Mortgage numbers dropping off

- Personal bankruptcies are going throught the roof

- Interest rates continuing to rise

- Increase in number of repossession orders from landlords showing tenants having difficulties paying rent

- significant rise in the level of salary and interest cover, currently Q1 2007 17.3% the 4 year average has been around 13-15%, so still increasing dramatically, and will only increase further with huge mortgages and continuing increases in interest rates.

This credit crunch is going to hurt, and its showing all the hall marks right now. Anyway thats all I have to say for now.

Regards

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right ok. cheers DS

interesting as this news is - its still out of date. Now repo data for the first half of 2007 would be exciting to see.

hmm I wonder what a good guess would be..........24000 repos for 2007??

Official figures on repossessions for 1Q07 here:

http://*******.com/35xccq

Looks pretty stable YOY - 1% increase in actions brought. But the figure this thread relates to is properties actually taken into possession, which is supplied by the Council of Mortgage Lenders - it looks like the government can only get a yearly figure from them, which is a bit silly.

Still, you can compare actions brought + repossession orders made on a YOY basis for 2Q and get a rough estimate of actual repossessions for the first half of 07. The 1Q figures were published 04 May 07, so expect 2Q figures in about one month's time.

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Perhaps the reposession rate is now a state secret? :ph34r:

Its perhaps the most chilling aspect of the crash imaginable. I think we have turned the corner now and the news is just going to get uglier and uglier. Bit depressing really, but I do look forward to being able to buy a decent house without a massive mortgage.

A friend "sold" their house about 8 weeks ago but their buyer pulled out just before exchange. Its back on the market and they have had zero interest for weeks. It had "sold" in a couple of weeks when last marketed. They were going to STR but I fear they have lost it all now. The window of opportunity to get out before the storm hits is slamming shut.

flat above me was sale agreed , it is now for sale again ha ha!

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