How are failed mortgage ''evictees'' going to be housed ?

Question

With Banks and Building Societies blindly snatching back houses from people that have and are suffering from mortgage interest hikes,coupled with dropping house values and now job endangerment.

Are the immigrants going to be given the snatch back houses, whilst the evictees live in Bed and Breakfast or hostels.

This Government are still bringing in people from abroad and housing them as urgent requirements.

Answer 1

****Oh man, ATJ.... we are going to have a looong talk.****

People didn't get mortgages knowing they wouldn't be able to pay them!  You're the typical ignorant American redneck the world pokes fun at, who's probably uneducated and doesn't even understand the facts of this situation.  You must be a FOX viewer as well.  Just a guess.  :)

Banks handed out mortgages with *variable interest* instead of *fixed interest*.  You must be 12 or something so I'll explain the difference.  A fixed interest rate stays the same forever.  Which means if you have to pay $1000/month back to the bank, and they charge $200 on top of that for interest, your total mortgage payment will always be $1200.

A *variable interest rate* is when the bank says, "Look.  The country on average is being charged $200 in interest, but we'll give you this awesome deal where you only pay $50 interest.  BUT!  The catch is that when we (the bank) sell your mortgage to someone else (another bank), they can INCREASE your rate.

There's nothing wrong with that.  Variable interest sounds good.  Who cares if the interest increases by a couple of hundred bucks 10 or 20 years down the road.  That's normal.

*THIS WAS THE PROBLEM*

America has become a capitalist nation.  It's all about money, money, money.  The banks sold people's mortgages to other banks.  They sold them to Wall Street.  Then Wall Street sold them to international buyers who want a piece of the American economy.  Now, each time a mortgage gets sold, the big companies buying and selling them make a large chunk of money.  BUT the interest rate goes just a teeny bit higher for the homeowner.  

I naturally assumed that there must have been some sort of limit set in place by law to protect homeowners, so that companies didn't keep selling and reselling and keep hiking up the homeowner's mortgage payment until it became double or triple of the original mortgage payment.  But, of course, the American government only cares about the big businesses making loads of cash and don't give a c**p about the little people.

And now look what happened.  Homeowners trusted their country to protect them, but instead the government let the banks run wild.  People can't afford to pay their outrageous mortgage payments and are now losing their homes.

NOW do you understand ATJ?

God you're an idiot.  People like you just make me wanna sit down and cry.

(btw, I know this is about the UK housing market.  but i wanted to yell at ATJ anyway.  sorry rogergly... :P )

Answer 2

Britain has a burst housing bubble like the US?  that's too bad.

Answer 3

How about sticking them in those 600 alleged FEMA camps everyone says exist.  We could use them in national labor units to rebuilt infrastructure.  No work, your starve.

Answer 4

With difficulty, sadly.

That is capitalism for you.

Answer 5

In the US, there are plenty of empty housing units, due to the overbuilding and subsequent mortgage mess.

People will be renters in these homes.  Truth be told, many of the "mortgages" sold them were little mare than rental agreements anyway.  The mortgagees had little or no equity in these homes in many, many cases.

Answer 6

You know, as interesting as i find this post, I gotta say...

Americans need to MAN up....we need to realize the dire straits we are in, give up that 2nd car, those 3-Comcast recordable HD boxes, the 2nd phone line, the unlimited minutes on the cell...you get my point.  the most important thing we have is our house, (speaking of possessions) so we need to do everything we can to save the house.  if it means selling the brand new escalade the family was soo happy to get, to drive around in an 82 suburban rustbucket, well, then thats where we ALL need to go.

I am in this situation, my mortgage has fully amortized, its through the roof, and I am working my tail off to maintain what I have.  However, I am very close to cutting some of the 'fat' loose to make things comfortable, but I am going to keep my house no matter what happens.  Yes, its upside down, a fact that happened to many people buying at the height of the buying frenzy a few years ago, but i was ok with it because of where i moved to....

anyways, ill say it again.  Americans need to MAN up and take care of themselves.  dont lay on your back hoping someone else is going to fix it.  each individual effort helps out the collective.  

ps.  theres a reason the immigrants are moving into 'our' homes.  its because, they want it more.  I appraise houses all the time where there are 15+ working age people living in there, sleeping in shifts...guess what , they pay the mortgage.  MAN UP!!

Answer 7

I have no pity on suckers who took out mortgages without being able to pay them how stupid! They should have known this would have happened!!!!!!!

Answer 8

most of them in my area are put in hostels and homeless shelters because the council homes and housing association property's are given to Eastern europeans instead of English natives.

Answer 9

The banks and building societies seem to blind to the fact that their panick response to the current economic downturn will feed into this mess. Most of these houses end up being auctioned for far less than what they were mortgaged for in the first place. So no one is a winner. If banks have no cash to lend, they will have no buyers, if buyers have less cash, these very same houses will be driven down in value. By adopting this panick response they will further damage the housing market.

There is very little chance that reposessed houses will be sold to local authourity or housing associations, they do not have the means to invest in further stock. If these houses are rented it is more likely to be privately with local councils footing the bill. And yes sadly you are right in saying that priority will be given to immigrants. So I guess we can expect more huge hikes in council tax.

Answer 10

its already going on

Answer 11

I doubt it as the banks own the property. The banks will either sell the property on (could be to the government or private) or rent. But i think the government has to start to act on the immigration in this country as at the moment the country cannot look after its own citizens nevermind those who come from europe.  

Answer 12

We nearly went through this when I was 7months pregnant and we were offered nothing but B&B accommodation for 6 weeks and a photocopied list of private landlords.  The fact that we had a child on the way meant for nothing.

We were not being irreponsible about paying - what happened was that I became ill during my pregnancy and was unable to work, plus my partner had his hours cut at work as the business was making loads of layoffs.  Without our previous wages we could not afford to keep up with the repayments - we had mortgage protection insurance but it let us down as they said they would not cover "pregnancy-related" illnesses!  After falling two months behind (we were paying what we could but we ended up with a shortfall of two months) the Mortgage Co started proceedings.

The Council treated us like utter sh*t and even at one point suggested that we had DELIBERATELY got pregnant and defaulted on our mortgage in order to get a Council House!!! Who the h**l do they think wants one of their scabby houses so badly that they'd go to all that trouble I don't know.  I'd much prefer to stay in my own home, thanks.

We were helped by Shelter who came to court with us and argued our case for a Suspended Repossession order to give us time to pay off the arrears, and my mothe rin law who came through with some money to help us out.  So we kept our home.

But I was truly disgusted by the attitude of the Council.  They really did treat us like c**p.  And when a local Housing Association in my area admits that nearly 90% of its tenants are former Asylum Seekers - to the extent that they've had to take on Somali-speaking staff to deal with the tenants who don't speak English, makes me very angry.  We've lived and worked and paid tax here all our lives as have all my family - not to mention the ones who died for this country in two world wars.  and yet when we run into hard times this is how we're treated.

If you're a white UK taxpayer whose always paid your own way but falls on hard times you get NOTHING from the Government.  This is fact.  I work with benefit claimants and have spoken to many self-employed people who've paid tax and NI all their lives but been let down and refused benefits when they finally need to claim due to illness or unemployment.  Its seems all the lazy scroungers and blaggers don't seem to have any problem, however . . .

To AJT - actually we are not "suckers" and we didn't take out the mortgage "without being able to pay it" we could pay it fine, and we did for 8 years.  However, circumstances do change, often for the worse, and this is what happened to us.

Answer 13

The government will not do more than make vague announcements and issue press releases that will be taken at face value by the mainstream media.

You answer is the government will not do much of anything. You are own your own and a year from now, you will feel like you are treading water with the sharks circling and no land in sight. Sorry, but you should be reading the financial news about Freddie Mac, Fannie Mae and what is happening with big oil. If you expect the President or the U.S. Congress to help you, you are living in fantasy land.

The shakeout has only just begun, my friend.

Answer 14

Nobody gets' 'given' repossessed housing. It gets chucked onto the market and the mortgage company, who don't really want a house, will sell it off at whatever price they can get for it.

I'd suggest, somewhat uncharitably, that if you've mortgaged up to the eyeballs in the expectation that you'll make your money anyway then found out that you're actually head down in the smelly stuff, it's your own fault.

Answer 15

Well, the immigrants will come first anyway !!! The Brits may get a rabbit hutch in 2015.