Neg equity

mr.broderick

Adebisi wrote: »

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.

As ridiculous as that sounds tens of thousands will be doing it as we speak, buying playstation 3's and lcd tv's no doubt

ad9898_3

sockpuppets wrote: »

MSE users should note that sockpuppetry is strictly forbidden on the Sabbath. Thank you.

Bloody 'ell Brodders, if that's your chick in your Mr.B avatar, you should be seeing to her rather than having 4-5 usernames on here to keep up with.:D

Generali

ad9898 wrote: »

some people believe the banks will use margin calls, which basically means the bank will write to you to ask for a hefty chunk of cash to keep the LTV in balance. This will never happen in my opinion.

I can see it happening with offset mortgages - you think you've got £50,000 offset against your initial £150,000 loan. The bank says to you, we've reduced you mortgage to £110,000 using £40,000 of your savings as your house has fallen in value and we need to maintain our LTV. It reduces the bank's risk at a stroke.

Don't underestimate how underhand banks can be. I remember in the last recession, one bank (Halifax???? not sure) taking money from the savings of the debtor's children to make good a debt.

ETA: Yeah, sock puppets. Boring.

Adebisi

mr.broderick wrote: »

As ridiculous as that sounds tens of thousands will be doing it as we speak, buying playstation 3's and lcd tv's no doubt

I mean just getting the cash out of the bank or credit card and sticking it under the bed. Then buying the house at the reduced rate for cash.

mr.broderick

ad9898 wrote: »

Bloody 'ell Brodders, if that's your chick in your Mr.B avatar, you should be seeing to her rather than having 4-5 usernames on here to keep up with.:D

Done enough 3 kids.

pickles110564

mr.broderick wrote: »

Done enough 3 kids.

And 20 or more usernames.:rotfl:

Credit_Check_Services

Getting back to the original post, it is unlikely the lender will take back the mortgage after the fixed period, in fact it may well be impossible, unless you default on the repayments. Hang on in there, in a few years prices will start to recover and the negative equity will eventually turn into positive equity.

Thrugelmir

Adebisi wrote: »

I mean just getting the cash out of the bank or credit card and sticking it under the bed. Then buying the house at the reduced rate for cash.

You may find yourself becoming embroiled in a money laundering investigation ...... Unfortunately "paying in cash" isn't as easy as it was.

Dan:_4

Adebisi wrote: »

I mean just getting the cash out of the bank or credit card and sticking it under the bed. Then buying the house at the reduced rate for cash.

What if your house burned down?

gizmo111

Presumably this is something like the NR 95% secured and 25% unsecured portion?