What's wrong with letting people get repossesed ?

abaxas

smk77 wrote: »

And what about those that can afford a house with, say, an 80% morgage? A flood of properties on the market would push down the prices of houses and may result in those who could afford their property to end up in negative equity. These "responsible, frugal, hard working, deposit saving people" would end up with the deposit they had saved up wiped out.

Surely a static market would be best for all. Those that saved hard and bought a house that they could afford wouldn't loose and those that can't afford at current rates would in the future see pay rises that would enable them to afford a property.

Hoping for house prices to drop at the expense of people who, like you, have worked hard and saved is rather unfair.

Both arguments are a load of 'tosh'.

No-one has any rights to current or future valuation (ie equity) however they have responsibility to the loan they took in buying the property.

We shouldn't feel sorry for people who have overpaid or feel happy for those who have gained from increasing valuation. Buying a property is a choice not a right or requirement. They chose their path, they must deal with it's consequences.

Gordon861

Posted this elsewhere but it fits here.

"Negative equity is only a problem if you need to move or remortage, if you can afford the repayments your house is a HOME not an investment."

Too many people seem to start panicing as soon as their house value goes down. If you paid £200k for a house that will only sell for £150k and you now owe the bank £180k it is in the banks interest to keep you in the property as they would probably only get £120k back if they kick you out.

smk77

abaxas wrote: »

Both arguments are a load of 'tosh'.

What arguements?

abaxas wrote: »

No-one has any rights to current or future valuation (ie equity) however they have responsibility to the loan they took in buying the property.

I did not say that anyone has a right to equity in there house or that buying was a right.

abaxas wrote: »

We shouldn't feel sorry for people who have overpaid or feel happy for those who have gained from increasing valuation. Buying a property is a choice not a right or requirement. They chose their path, they must deal with it's consequences.

The point that I was making was that not all people who loose their house have acted irresponsibly by buying a property that they'd over stretched to "afford".

People taking out a short term fixed rate without considering the fact that interest rates are likely to rise need to take responsibility for their actions.

hemoglobin

repossession is a new trend now. people are being realistic of what will happen to them, not all repossession is bad. probably this is to downsize their lifestyle. with what happening to our economy itshard to have a mortgage and mentaining aswell. our taxes is increasing comodities are racket high... leaving here in england is so expensive...so do what you think its good for you and your family. dont mind people around who knows their just trying to fish information on what to do with their finances who are pretending to be ...