MSE news: Number of property repossessions soars

Former_MSE_Guy
Former_MSE_Guy Posts: 1,650 Forumite
I've been Money Tipped! Newshound! Chutzpah Haggler
edited 14 August 2009 at 10:14AM in Mortgages & endowments
This is the discussion thread for the following MSE news story:

"Over 24,000 families had their homes repossessed during the first half of this year, it was announced today.

The Council of Mortgage Lenders (CML) expects a massive 63% rise in repossessions this year ..."

Comments

  • My house got repossessed last year, banks thought they could get alot of money from it at the time! I was made unemployed last year also and people where chasing me for my debts but I couldn't afford to go Bankrupt. Luckily the banks thought I still had money and made me Bankrupt. I have never felt so stress free in all my life! I would never have a mortgage again even if I was on a Big Salary! When House prices move up, the banks will move in for the Kill. So Beaware!!!!!
  • ~Brock~
    ~Brock~ Posts: 1,710 Forumite
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    Is it just me, or does anyone else think there is a slight case of double standards at play on this website when there is an article on the front page explaining how to cash in on repossessed properties?
  • Cannon_Fodder
    Cannon_Fodder Posts: 3,980 Forumite
    There are winners and losers in all markets.

    Some thought they could win on the way up the bubble, but over-reached or were hit by bad luck on the job front...leading to repossession.

    Others had to wait for their chance to find an affordable property, so may now do so without over-reaching, or have been stopped by bad luck on the job front.

    I would say the entire premise of this website is largely founded in fact that Britain had been over-priced and milked for every penny by corporations and government alike.

    If advice on buying repossessions helps a family to get a doer-upper, rather than it fall into the hands of a professional developer to milk a 40% profit out of, then that's good work, in my opinion.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    MSE Report:
    MSE news: Number of property repossessions soars


    BBC Report:

    "The number of homes repossessed in the UK fell 10% in the second quarter of the year compared with the previous three months, lenders say."

    So which is it?

    MSE reporting things in a sensationalist way, or BBC showing their pro-New Labour colours once again?
  • dunstonh
    dunstonh Posts: 116,252 Forumite
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    MSE reporting things in a sensationalist way, or BBC showing their pro-New Labour colours once again?

    Take a stat and you can make it anything you want. MSE seem to be sensationalising it with the phrase soar.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    ~Brock~ wrote: »
    Is it just me, or does anyone else think there is a slight case of double standards at play on this website when there is an article on the front page explaining how to cash in on repossessed properties?
    No double standards, just addressing different audiences.

    For me huge numbers of repossessions and forced sales would be excellent news because I've never owned a property and could buy at lower cost. But that's not happening because reduced interest rates, rescue schemes and tolerant lenders are artificially reducing the number of repossessions so they are only 30% above last year.

    For those losing their homes, likely because they lost their jobs, it's a horrible thing to have happen.
    opinions4u wrote: »
    MSE reporting things in a sensationalist way, or BBC showing their pro-New Labour colours once again?
    The BBC has the better report. Repossessions are remarkably low given the general economic situation, helped by the reasons I gave earlier.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    IanH69 wrote: »
    When House prices move up, the banks will move in for the Kill. So Beaware!!!!!
    That would make no business sense.

    If repossession is appropriate, you don't defer it for an unknown period of years because it's likely the debt owing will increase faster than the house price recovery.

    Additionally, as and when prices recover it is likely that the economy will be stronger. Many people who are in arrears but maintaining sort of payment may well move from negative equity to positive equity.

    Rather than repossessing it is far more likely, where the borrower is back in a position of affordability, that arrears can be capitalised to the mortgage account and repaid over the remaining term of the loan. Where the borrower can't afford to maintain the loan a stronger housing market will make an unenforced sale easier to obtain.

    This gives the borrower the chance to keep their home and recover financially and makes the lender bigger profits over a longer period than a respossession ever could.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Name Dropper First Post First Anniversary
    opinions4u, you have two groups of possible repossessions, those who may recover if they get another job and those who are dead or otherwise unlikely ever to recover. The mortgage lenders appear to be taking the view that it's better to delay a sale in the first case so that they can repossess and sell in the second case without the volume of repossessions from doing both driving down the price in the market even further.
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