Sunday, October 26, 2008

Repossession, repossession, repossession

Banks exploit legal loophole to seize homes

According to the Ministry of Justice, 97,026 charging orders were granted by courts in England and Wales last year, a tenfold increase since 2000. They allow financial institutions to order the sale of a property to pay off unsecured debts on credit cards, personal loans, store cards and car finance. Some will have been used only to threaten the debtor, or to levy a surcharge on the mortgage to recoup the debts. Nationwide, the building society, and Northern Rock, which was nationalised earlier this year, are among the most aggressive in using the court orders. The rate at which the courts have granted charging orders has increased sharply in the past two months, according to Citizens Advice, National Debt-line and the Consumer Credit Counselling Service.

Posted by drewster @ 01:33 AM (885 views)
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8 thoughts on “Repossession, repossession, repossession

  • Here we go. Prices haven’t tumbled spectacularily yet because there haven’t been many forced sales. In the last couple of months forced sales have set in. Now watch general HP crash good and proper.

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  • dohousescrashinthewoods says:

    Blimey, this is wretched.
    There has been a fair amount of campaigning to educate people that unsecured debt is far better than secured debt. After all, “secured” sounds safer than “unsecured” and people aren’t always told it basically means they could lose their home. This would appear to make each as bad as the other.

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  • You borrow the money, they’ll come after whatever assets you have when you don’t pay them back. Its not rocket science. Do people think they can max their cards out and walk away with no consequences? If there’s still some equity in the house, they’ll want that. Just be glad the Nationwide don’t do kneecapping (yet!).

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  • banks always win in the end, secured or no secured loan.And the government is happily letting them doing so. Privatising profits and socialising the losses.That’s the new next 30 years mantra.

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  • mark wadsworth says:

    I like these comments best:

    Why all the fuss? Here’s a lesson that all people should learn: Credit isn’t ‘free’ money. If you borrow money, then you must pay it back. Simple. Oh, and… read the small print. No sympathy. Joe Garrick, Wolverhampton,

    and

    If you don’t repay debt you pay the consequences. Frederick, London, UK

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  • gardeniadotnet says:

    I like these comments best:

    Why all the fuss? Here’s a lesson that all people should learn: Credit isn’t ‘free’ money. If you borrow money, then you must pay it back. Simple. Oh, and… read the small print. No sympathy. Joe Garrick, Wolverhampton,

    and

    If you don’t repay debt you pay the consequences. Frederick, London, UK

    Tell that to the US Fed and the Bank of England – QUICK!

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  • Two things here :-
    Banks proceeding with this action will sell off the properties dirt cheap. That’ll bring the prices down somewhat.
    Or they’ll be stuck with a load of unsaleable properties. Cheaper renting on the horizon which will be needed for homeless people.

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  • Warning

    Before believing legal advice or interpretation given in a newspaper, look at what the courts actually do.
    Go to the HMCS site and look at charging orders.

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