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Super Rich & Credit Crunch
Comments
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Works both ways, look up Casey Serin for one. There's lots of cases where people on astoundingly low incomes were buying properties 7-10 times their income, not all were "sold" mortgages by unscrupulous brokers. I am not convinced for one moment that the woman in the program actually read what she was signing, but then at the point of signing the mortgage she wasn't bothered. Now it comes back to haunt her, she's complaining (not that it will get her anywhere).Those companies literally raced to get those sub prime mortgages, and they started them with a teaser rate of 25% of the actual monthly cost, when the rate went up by 75% , 6-12 months later. It was unbelievable as they had been led to believe the first 'teaser rate' was what they would be paying per month! Correct me if I am wrong here but is that not practically fraud?
What scared me was the sheriff who said he'd gone from doing 12 repos a week to 90 a week. Plus, if you noticed, they went into that house with their guns drawn. When they say eviction, they mean it.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
BobProperty wrote: »Plus, if you noticed, they went into that house with their guns drawn. When they say eviction, they mean it.
I was shocked at that, but when you think about it, there must almost certainly be occasions that they get shot at when doing repossesions, so they probably need to go in armed just in case. Puts our problems with knife crime in persepctive.0 -
Those companies literally raced to get those sub prime mortgages, and they started them with a teaser rate of 25% of the actual monthly cost, when the rate went up by 75% , 6-12 months later. It was unbelievable as they had been led to believe the first 'teaser rate' was what they would be paying per month! Correct me if I am wrong here but is that not practically fraud?
You think the UK is so different? What do you think all the 2 year Fixed rates at 3.99% being issued 2 years ago were if not 'teaser rates'?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You think the UK is so different? What do you think all the 2 year Fixed rates at 3.99% being issued 2 years ago were if not 'teaser rates'?
I think the big difference factors will be massive oversupply in the states and non-recourse loans. Plus there just wasn't the same level of blatant fraud here as there was in the US.. though 'self-cert' comes perilously close.
Having said that, watching the C4 report last night drove home how oversupplied the BTL 'city centre luxury apartment' sector is in many cities. This is bound to put downward pressure on BTL house rents in the same cities which in turn will lead to more distressed BTL sales. Which of course puts pressure on house prices generally.
But what amazed me was the naivety of the financiers in thinking that people wouldn't walk away from houses when they couldn't afford to pay the non-recourse loans.
I mean, who wouldn't walk away from a house in negative equity when faced with unaffordable loan repayments if you could just hand the keys back to the bank and have the loan written off??? It's a no-brainer as the yanks say.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
WE DON'T (and never did) but we never had (and still don't have) a say .The only difference is how these robber barons have done it. Remind me why we need these parasites at all.
Now these leeches have packed up and are enjoying themselves in a tropical paradise, complete with staff, personal trainers, shoppers, spa and what you want....
And we are paying up not only with our mortgages, but our taxes too.
All very uplifting.0
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