High Court blow for UK homeowners

mystic_trev

A landmark High Court ruling has paved the way for mortgage lenders to sell the homes of borrowers in arrears without seeking a court order, bypassing Gordon Brown’s efforts to make repossession a “last resort”.

The ruling, which the judge described as having “wide-ranging implications”, strongly reaffirms the statutory right of lenders under a 1925 law to sell a property independently after two mortgage payments are missed.

http://www.ft.com/cms/s/76031846-aea9-11dd-b621-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F76031846-aea9-11dd-b621-000077b07658.html%3Fnclick_check%3D1&_i_referer=http%3A%2F%2Fboards.fool.co.uk%2FMessage.asp%3Fmid%3D11308355&nclick_check=1

abaxas

God, this boils my blood.

Why should we feel sorry for people who don't pay their debts! The answer is, we shouldn't.

What kind of society find default acceptable? Sadly one that is dying :<

Take it from them if they dont pay. Simple as

Dan:_4

abaxas wrote: »

God, this boils my blood.

Why should we feel sorry for people who don't pay their debts! The answer is, we shouldn't.

What kind of society find default acceptable? Sadly one that is dying :<

Take it from them if they dont pay. Simple as

I don't think anyone finds default acceptable. But shouldn't someone be allowed some time to get back on their feet following an unexpected event?

abaxas

Dan: wrote: »

I don't think anyone finds default acceptable. But shouldn't someone be allowed some time to get back on their feet following an unexpected event?

No,

Would you be happy not to get your wages for 2 months as your employer was having difficulties?

Emotion should never be involved in financial transactions.

Bf109

abaxas wrote: »

Would you be happy not to get your wages for 2 months as your employer was having difficulties?

Exactly.

You sign on the line,
You pay on time.

EDIT - I'm so sick of people expecting everyone else to pay the bills for their imprudence.

Why should my savings and pension suffer because Wayne and Waynetta Chav took out a 125% loan to buy their council house and go for a few Club 18-30 jaunts to Faliraki?

Dan:_4

abaxas wrote: »

No,

Would you be happy not to get your wages for 2 months as your employer was having difficulties?

Emotion should never be involved in financial transactions.

It's not emotion. It's attempting to help ordinarily people/families keep a roof over their head. Im not just talking about mortgages either.

Im not saying this shoud last for months, but if your sugessting they should be kicked out the day after a missed payment, then no - depending on individual circumstances, they should be offered a bit of time.

Maybe they should make mortgage repayment/rental payment insurance compulsory?

kennyboy66_2

Oh, I love these macho "chav scum, turf them out" merchants.
Did you actually read the article.

It was for a buy to let property & hence a business mortgage.

It is extremly unlikely that a court would apply this ruling to a normal owner occupier home.

Courts are generally weighted in favour of home owners rather than banks, provided that people don't bury there head in the sand.

And rightly so.

Paulgonnabedebtfree

Bf109 wrote: »

Exactly.

You sign on the line,
You pay on time.

EDIT - I'm so sick of people expecting everyone else to pay the bills for their imprudence.

Why should my savings and pension suffer because Wayne and Waynetta Chav took out a 125% loan to buy their council house and go for a few Club 18-30 jaunts to Faliraki?

I do understand where you are coming from. However, in the case of families, it would cost you a lot less if a family were to be allowed to make an arrangement with their creditors than if the social services became involved with re-housing, care systems etc. Hungry families huddling under blankets may be considered normal in some parts of the world but personally, I am prepared to pay a bit to help stop that happening. Such a scenario is far more demeaning to us all (IMO).
Maybe you assume that it is always someone's fault that they get into debt.
Maybe someone else assumes it is never the debtor's fault.
Reality lies somewhere in the middle.

abaxas

Woot!

I'm off to tescos to steal some food. It's my hooman right not to pay INNIT

WTF?_2

abaxas wrote: »

God, this boils my blood.

Why should we feel sorry for people who don't pay their debts! The answer is, we shouldn't.

What kind of society find default acceptable? Sadly one that is dying :<

Take it from them if they dont pay. Simple as

I don't want to see people dodging debt or being bailed out by the taxpayer etc. but I do think people should have the protection of a court when it comes to facing repossession.

That said, with the sheer volume of repossessions on the way there could be all sorts of pressures on the courts.

kennyboy66_2

!!!!!!? wrote: »

I don't want to see people dodging debt or being bailed out by the taxpayer etc. but I do think people should have the protection of a court when it comes to facing repossession.

That said, with the sheer volume of repossessions on the way there could be all sorts of pressures on the courts.

I think this shows how (rightly in my opinion) courts will discern between BTL and owner occupiers.
There is plenty of case law that gives owner occupiers time to make alternative arrangments (eg paying arrears over the life of the mortgage etc).

However there is no way of people keeping their home and dodging their debts or getting bailed out by the taxpayer.