Neg equity

ad9898_3

To the mods of this board........

I think we need a 'sockpuppet sticky' on this forum so that all this socky frustration can be taken out on one another in it's on fun filled thread.:D

whathavewedone

I don't think banks will be making margin calls either - it's simply not in their interests to do so if people are able to pay their mortgage.

whathavewedone

Can't people have similar views without being the same person? If Chucky and Dan are one and the same then are Macaque and mgf123 or whatever he's called the same person too?

Having said that, fatpig and AD44downey do have a very similar and distinctive posting style...

Graham_Devon

If the banks started margin calls, after bailouts and QE, there would be mass riot. Or there damn well should be.

tomterm8

I don't think that secured lenders will make margin calls, but I am sure that many unsecured lenders will do so and have been doing so. Unfortunatly, the law has changed to make unsecured debts much more like secured debts and this could still result in reposession if there is any equity in the house.

Radiantsoul

tomterm8 wrote: »

I don't think that secured lenders will make margin calls, but I am sure that many unsecured lenders will do so and have been doing so. Unfortunatly, the law has changed to make unsecured debts much more like secured debts and this could still result in reposession if there is any equity in the house.

There has been no such change in the law. Charging orders are not new, an unsecured debt is not an unenforceable debt but rather one that ranks behind secured debt. Morally and legally all debts are repayable; a person who has assets will be expected to liquidate them to repay those debts.

tomterm8

Radiantsoul wrote: »

There has been no such change in the law. Charging orders are not new, an unsecured debt is not an unenforceable debt but rather one that ranks behind secured debt. Morally and legally all debts are repayable; a person who has assets will be expected to liquidate them to repay those debts.

The Tribunals, Courts and Enforcement Act 2007 s93 and s94.

The effect of these sections is to make it possible for the court to grant a charging order regardless of whether a repayment plan or installment plan is in force for the debt.

In effect, this means even if you are repaying the debt to the best of your ability, your house can still be reposessed. As for moral issues, the vast majority of people on taking out an unsecured loan do not understand that there is a recourse of repossesion on their home. That is the fundamental difference between unsecured and secured debt. Of course, if a house is sold any proceeds should be used to pay off unsecured debt, but there is a large difference between voluntarily selling your house and repossesion.

In summary, please don't tell me the law hasn't changed when it has.

mr.broderick

whathavewedone wrote: »

I don't think banks will be making margin calls either - it's simply not in their interests to do so if people are able to pay their mortgage.

I have no idea why this is being talked about.
If I were in massive neg eq and they asked for a chunk of cash i'd just give them the keys back and tell them to do their best.

pickles110564

whathavewedone wrote: »

Having said that, fatpig and AD44downey do have a very similar and distinctive posting style...

And Napolean.

Adebisi

mr.broderick wrote: »

I have no idea why this is being talked about.
If I were in massive neg eq and they asked for a chunk of cash i'd just give them the keys back and tell them to do their best.

Time to get loads of cash on credit cards/loans and store it up then get the old bankruptcy going. And buy the house back for nowt.