BBC - Negative Equity, have your say.

Snooze

westy69 wrote: »

The point i was attempting to make although Snooze appeared to have missed it was that yes it can be a bad thing but its not the end of the world essentially you have not lost money unless you need to sell, yes the value at that point of your house has dropped but if you are not selling then it should/can be manageable. (all in my stupid opinion) :rotfl:

Oh dear... I give up. You explain it to him !!!!!!? My head is now sore from all the wall-banging.

Rob

WTF?_2

westy69 wrote: »

!!!!!! i agree with what you are saying saving up is a very good idea you do have to adjust your attitude, also ok maybe you are not in NE today but in 3 months you may be so basically its time to stop spending on non essentials.
The point i was attempting to make although Snooze appeared to have missed it was that yes it can be a bad thing but its not the end of the world essentially you have not lost money unless you need to sell, yes the value at that point of your house has dropped but if you are not selling then it should/can be manageable. (all in my stupid opinion) :rotfl:

Being in negative equity leaves you horribly exposed to negative changes in your financial situation such as losing employment which goes from being bad, to being an absolute disaster.

You face real financial problems stemming from future mortgage payment increases unless you have a deal that is likely to last beyond the period of negative equity.

You are more or less tied down to your house as selling up and moving becomes very complicated unless the move restores equity.


Whilst you can certainly survive it, and most will, it's by no means something that can be disregarded. Especially if you have a family to worry about.

westy69

ok point taken.

Dan:_4

!!!!!!? wrote: »

Whilst you can certainly survive it, and most will.

THANK-YOU!!! The point I have made 3 or 4 times in this thread.

WTF?_2

Dan: wrote: »

THANK-YOU!!! The point I have made 3 or 4 times in this thread.

'Can and probably will get through it' does not equal 'nothing to worry about'.

Negative equity is a seriously bad place to be. Being exposed to a tangible danger of repossession and bankruptcy at a time when the economy is looking ever dodgier is highly undesirable.

Having to worry about coming off of a fixed deal into near-unaffordable mortgage repayments with next to nothing you can do about it, ditto.


Anyone finding themselves in negative equity should take steps to protect themselves. Economising and hard saving is a must. Not gambolling along, carefree, deluding yourself that 'there's nothing to be done so nothing to worry about'. It's like not opening the post because you are expecting a payment demand.

mr.broderick

!!!!!!? wrote: »

Is finding yourself tens of thousands of pounds in debt with no assets to show for it a good thing or a bad thing?

Is running the risk of reposession and bankruptcy should you be unable to meet mortgage payments a good thing or a bad thing?

Is facing the above consequences should you lose your job a good or bad thing?

Is being unable to sell your house should you want/need to a good thing or a bad thing?




Good grief. Do you have any idea of what it's going to be like in negative equity, in an economic recession? :rolleyes:

What crap you spout. In case you have overlooked it, you're talking about some ones house, you know the place they go home to after work ? Familiar with this concept ? It's not 500 shares in british telecom

Dan:_4

!!!!!!? wrote: »

'Can and probably will get through it' does not equal 'nothing to worry about'.

Negative equity is a seriously bad place to be. Being exposed to a tangible danger of repossession and bankruptcy at a time when the economy is looking ever dodgier is highly undesirable.

Having to worry about coming off of a fixed deal into near-unaffordable mortgage repayments with next to nothing you can do about it, ditto.


Anyone finding themselves in negative equity should take steps to protect themselves. Economising and hard saving is a must. Not gambolling along, carefree, deluding yourself that 'there's nothing to be done so nothing to worry about'. It's like not opening the post because you are expecting a payment demand.

I never said it was nothing to worry about. Some people will face horrendous problems, but, overall, people will get through it - and I just wanted you to admit that.

mr.broderick

!!!!!!? wrote: »

'Can and probably will get through it' does not equal 'nothing to worry about'.

Negative equity is a seriously bad place to be. Being exposed to a tangible danger of repossession and bankruptcy at a time when the economy is looking ever dodgier is highly undesirable.

Having to worry about coming off of a fixed deal into near-unaffordable mortgage repayments with next to nothing you can do about it, ditto.


Anyone finding themselves in negative equity should take steps to protect themselves. Economising and hard saving is a must. Not gambolling along, carefree, deluding yourself that 'there's nothing to be done so nothing to worry about'. It's like not opening the post because you are expecting a payment demand.

Negative equity in a house...It's what drives your fear !!!!!!, I doubt you will ever have the balls to buy a house, Negative equity, a distinct possiblility to a high percentage who buy a house, live with it, it comes with the territory.

WTF?_2

Dan: wrote: »

I never said it was nothing to worry about. Some people will face horrendous problems, but, overall, people will get through it - and I just wanted you to admit that.

Why do I have to 'admit' that ... When did I ever say that negative equity was going to wipe out the finances of everyone who suffered it?

Paul_N_4

You forget !!!!!! has you on ignore Brodders.

On a separate note, this thread reminds me of someone I know who's very lax with his money management. Has a home, has kids, has MEWed to buy a new car and new kitchen, is on IO mortgage, spends as it comes in and probably couldn't last a month if he lost his job without extending his mortgage to release more cash. He often says to me, no point hording money, you could be dead tomorrow. To which I reply, yes, but you probably won't be. He's feeling the pinch now.

Yes a house is a home, but somethings are worth waiting for.