Why banks are not repossessing?

[DimPrawn]

http://news.bbc.co.uk/1/hi/business/8332124.stm

A carpenter from Bridgend has won a five-year stay on any repossession proceedings against him by his lender.

Peter Bentley challenged the right of Blemain Finance, who specialise in second loans secured on a home, to repossess him.

He claimed that his contract with them involved an unfair relationship that was illegal.

The lender also agreed to charge no further interest and cut his repayments from £550 to just £150 a month.




Looks to me lenders are scared of a possible legal precedent that will forbid repossession if they acted irresponsibly or took advantage in lending in the first place.

[DiscoStu]

Sounds great, I'm off to try and find a 100% mortgage

[Moscow Mule]

Why banks are not repossessing?

Because if they took back all of the homes they wanted to, the would have to re-classify a lot more loans on their books as "at-risk".

Then they would have to find a lot more cash to cover the capital adequacy rules, then they would be royally screwed.

By keeping them on the books and rolling up the interest etc they can massage the figures, keep trading and stop a house price meltdown from happening (the ****ers).

[Clippy]

Didn't they also do a 'deal' with the govt at the start of the recession to be more 'sympathetic' towards motgagees>

In other words, the govt told them not to piss off the electorate or they wouldn't bail them out.

[Doggy Styles]

Didn't they also do a 'deal' with the govt at the start of the recession to be more 'sympathetic' towards motgagees>

In other words, the govt told them not to piss off the electorate or they wouldn't bail them out.

I see. So can we expect a raft of repossessions from next July onwards?

[Moscow Mule]

I see. So can we expect a raft of repossessions from next July onwards?

C.60000 a year for the next three years or so.

It's a shame MLAR only started in 2008.

http://www.fsa.gov.uk/pages/Doing/Re...tats_sep09.pdf

[ThomasSoerensen]

I see. So can we expect a raft of repossessions from next July onwards?

no - because then the banks will still collapse.

Expect a trickel of reposseions for the next 20 years.
If you want to look at the future of the west - look at Japan from 1990-2009

[TimberWolf]

no - because then the banks will still collapse.

Expect a trickel of reposseions for the next 20 years.
If you want to look at the future of the west - look at Japan from 1990-2009

Didn't Japanese house prices fall massively though?

[Sysman]

C.60000 a year for the next three years or so.

It's a shame MLAR only started in 2008.

http://www.fsa.gov.uk/pages/Doing/Re...tats_sep09.pdf

What does MLAR stand for? Gurgle only shows Yank stuff for the term.

[AtW]

If you want to look at the future of the west - look at Japan from 1990-2009

Will failed directors of all kinds start committing suicide like they did/do in Japan?