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Emergency Scheme To Help Cash-strapped Homeowners

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http://www.guardian.co.uk/business/2008/ju...nch.houseprices

Homeowners struggling to meet their mortgage payments would be able to sell their homes to the local authority and rent them back as tenants under radical proposals being considered by the government to prevent the misery of repossession.

Emergency measures to allow families to keep a roof over their heads are being drawn up as the scale of repossessions proceedings becomes increasingly apparent. In Newcastle upon Tyne alone, the newly nationalised Northern Rock is monopolising at least one day a week in the county court to pursue defaulting borrowers.

The latest rescue package reflects growing fears about the seriousness of the crisis, with some analysts predicting that house prices could fall by 35 per cent. Ministers are worried about the 13 per cent of fixed-rate borrowers whose cheap deals expire this year, some of whom may by then be in negative equity and therefore unable to switch to a new fixed rate with another lender.

Caroline Flint, the Housing Minister, told The Observer yesterday: 'I am looking at what more we can do with our colleagues in local authorities - what they can do as well as actually building [homes], and what support they could give to people who might be feeling under pressure on mortgages.'

Asked to confirm that she was considering rent-back schemes, enabling homeowners to become council tenants in their original houses rather than be repossessed, she said: 'We are looking at that. I have to be certain that the choices I make do actually help to limit the damage; and, importantly, is it a short-term fix or a long-term impact?'

:lol: :angry: :lol:

Jesus wept.

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Where's the money coming from for all this? Vastly expensive idea.

Anyway, the council won't be offering top dollar that's for sure.

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NR are actually enforcing their Ts&Cs? Whats wrong with this? Would you rather the bank that anyone who pays any form of tax in the UK has funded just let people not pay?

It really is simple. Keep paying, keep home. Don't pay, lose home.

EDIT: As for the rest of the article - the buyback scheme - yes, it's retarded. But the bit Injin highlighted looks ok to me.

Edited by impatient_mug

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Where's the money coming from for all this? Vastly expensive idea.

Anyway, the council won't be offering top dollar that's for sure.

the trouble is that they wont be freed up to the rest of the market. It keeps irresponsible people in a home they shouldnt have had(or in a mortgage they shouldnt have got).

If it becomes statutory then ftbs are competing with these prices where the govt/council have to buy these places off people at whatever the market is at the time. Thereby pushing up demand.(or more like stagnating it)

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NR are actually enforcing their Ts&Cs? Whats wrong with this? Would you rather the bank that anyone who pays any form of tax in the UK has funded just let people not pay?

It really is simple. Keep paying, keep home. Don't pay, lose home.

EDIT: As for the rest of the article - the buyback scheme - yes, it's retarded. But the bit Injin highlighted looks ok to me.

Oh I was highlighting the Northern Rock is monopolising at least one day a week in the county court because that's an insane level of court time given over to one area and we haven't really even started the downturn proper yet.

A bottleneck like that will slow the house price crash and I can't see the government being too keen to open it, can you?

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!!

Will this transfer the (potential) cost off the gov's books and onto council tax?

Looks like it - which transfers all the housing into local governments hands when the massive tax bills don't get paid.

It's a ******ing mess is what it is.

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Oh I was highlighting the Northern Rock is monopolising at least one day a week in the county court because that's an insane level of court time given over to one area and we haven't really even started the downturn proper yet.

A bottleneck like that will slow the house price crash and I can't see the government being too keen to open it, can you?

Looks like I mis-understood what you were getting at. You do have a very good point there.

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Looks like it - which transfers all the housing into local governments hands when the massive tax bills don't get paid.

It's a ******ing mess is what it is.

I'm incandescent! GAAAAAHHHH! I will refuse to pay my council tax if this goes ahead (I know! I know!!!) :angry:

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You have to hand it to Nu Labour.

A full-blown attempt at the re-inflation of a massive bubble

Has it ever been attempted on such a scale before?

Property becomes worthless as average Council Tax reaches £10,000 p.a.

or has Injin got a friend at the Grauniad & they made it up?

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Sudden new enthusiasm for council housing after undermining it for a decade.

The very thing that might have limited the bubble is now wheeled out to prop up the market. :angry:

Council housing! An idea thought up by the Liberals and promoted by the Tories and Labour....until the era of that mad resentful woman and her two greedy and vindictive sons (Blair and Brown)

Yep, suddenly they've turned on a dime....but don't have one to spare.

Edited by council dweller

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Hasn`t this already started happening to some extent though - a friend of mine who owns a a nice detached property has just had a problem family from Manchester turn up next door -complete with council provided Car etc ,etc -turns out the Government gave money to a Housing Association to buy the house and theres little she can do about it -now it`s bins overflowing , kids running riot threatening her children and continous abuse night and day ....

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Oh I was highlighting the Northern Rock is monopolising at least one day a week in the county court because that's an insane level of court time given over to one area and we haven't really even started the downturn proper yet.

A bottleneck like that will slow the house price crash and I can't see the government being too keen to open it, can you?

So what your saying is we need some proper Kangaroo courts to get through the bottleneck and get the process done and dusted without any due process.

Has there been any calculations done on the court time needed say if 10% of outstanding mortgages default?

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So what your saying is we need some proper Kangaroo courts to get through the bottleneck and get the process done and dusted without any due process.

1) Are you up to date with your mortgage payments? Yes - go to B. No - go 2.

2) Can you catch up in a reasonable amount of time, and is this the first time you've said you would do so? Yes - go to B. No - go to 3.

3) Was the mortgage mis-sold or obtained thru fraud without the borrowers knowledge? - Yes - go to C. No - go to A.

A) Repossess.

B ) Do not repossess.

C) Full process.

Looks fairly simple to me - don't even need to go to court in most cases.

EDIT: Changed B) to B )

Edited by impatient_mug

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1) Are you up to date with your mortgage payments? Yes - go to B. No - go 2.

2) Can you catch up in a reasonable amount of time, and is this the first time you've said you would do so? Yes - go to B. No - go to 3.

3) Was the mortgage mis-sold or obtained thru fraud without the borrowers knowledge? - Yes - go to C. No - go to A.

A) Repossess.

B ) Do not repossess.

C) Full process.

Looks fairly simple to me - don't even need to go to court in most cases.

EDIT: Changed B) to B )

That is what they will eventually come up with.

What this means is a knock at the door on some peoples houses and a midnight eviction or coming home to find all their stuff on the flags.

Anyone want to put a bet on at least 5-10% of this being to the wrong people? Wrong addresses, mix up with direct debits and the like?

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The main objection seems to be the government can't afford it.

But couldn't they do it via some kind of deferred payment - a bond scheme like the War Bond scheme in WW2?

Eg, if a house is up for repossession, the council pay a nominal amount to the bank, say £1000, then pay the bank back the value of the house over the next 25 years or so, subject to interest of course, and offset by the rent payments made by occupiers. Effectively turning the State into a FTB.

They could use their position of power over banks like NR and B&B etc to force this through.

Of course, in the long run it would bankrupt the country, but as a short-term solution it might work, and in the long run they could gyp the banks somehow by nationalising them or something.

Don't forget that it's happened before the last time the country faced bankruptcy during WW2 - the Marshall Plan and Lend Lease etc bailed us out but we had to pay for it for the next 60 years.

Edited by Austin Allegro

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Repossesion needs to be avoided at all costs....if a family is repossesed, who's responsibility is it to rehouse them? Exactly. ;)

Theirs.

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I wander if the council will be willing to pay off their credit car debt and car loan at the same time. Unlike the last Crash its the added loans payable at higher interest are the killers this time round. Fire sales of property are generated to pay off the unsecured debt to stave off bankruptcy and the bailiffs thats providing there is any equity left in the house. Valuations are also dropping day by day .

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  • 399 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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