Repossessions set for dramatic rise - Shelter

BobProperty

RecoveringAlcoholic wrote: »

ROFL @

"Stockport and District Hatmakers and Brewers Building Society"

:T

We've lost a number of small building societies over the years, I'd guess about 20 in the last 20 years, and with them some wonderful old fashioned names. A quick check and we still have Stafford Railway Building Society (who sound like they should be constructing OO gauge layouts in the midlands), Earl Shilton Building Society and the Leek United (which is surprising in one respect as anyone who knows Leek, knows who the town's biggest employer is). Stockport's local mutual is actually called the Vernon Building Society.

dopester

You lot should stop comforting yourselves the big cuddly banks and building societies will be all softly softly understanding and gentle and caring to your circumstances if you've overstretched yourselves.

For me lenders have always been the big bad, and people are gonna learn this the hard way. Don't blame me when your dealing with big meat-head bailiffs.

Telegraph

Nor should we take much solace from the mortgage lenders' recent insistence to the Chancellor that they would only move "to repossession as a last resort". Close analysis of the repossession figures by David Owen, of Dresdner Kleinwort, shows that lenders are waiting for far fewer months before taking possession of struggling households' homes.

Ancedotal from hpc

The afternoon was spent attending another repossession this time allowing access to the defaulting borrowers in order to retrieve their personal possessions before the trigger happy asset manager authorizes a total house clearance the moment the 14 day notice expires. This is the grottiest part of my job by far, basically standing there like a prize prat in their former home while some poor couple try desperately to cram their lifetime possessions into a hastily hired white van. I always try my best at empathy and they usually tell me their story. This chap unfortunately lost his job at the end of Oct 07 and was repossessed by a certain recently nationalised bank at the end of February 08 with a mere 6K in arrears but with over 40K in equity left in the property even at forced sale prices. The poor chap said the Banks attitude changed from understanding and accomodative at the beginning to hard nosed agressive coming into the New Year.

BobProperty

dopester wrote: »

The poor chap said the Banks attitude changed from understanding and accomodative at the beginning to hard nosed agressive coming into the New Year.

Was it anything to do with their 31st Dec year end and their year end figures looking bobbins?
Interestingly, the same default policy would cause more repossessions now than in the last crash as the benefit rules are worse now for mortgage payers than they were in the early 90s.

Gorgeous_George

silvercar wrote: »

... Rent should be cheaper than a mortgage.

House maintenance and insurance wont add to the tenants costs.

I'm lost here. Rent and mortgages are two different things.

A LL needs to cover all costs. When calculating rent, it is reasonable to start with the IO mortgage cost. Add the costs of maintenance, insurance, profit and risk. This is how much the LL needs to recover and is therefore how much rent is required to make the business worthwhile.

A good tenant should expect maintenance and risk to be minimal. A poor tenant should expect to pay more.

GG