Recession.

[p111dom]

That is my point that 60k is what started houses should cost to be economically sustainable not 100k. It should be 60k or whatever the average starter salary is at the thime times 3. Like I said before there was a time when my house was appreciating more per month than I was paying on my mortgage so I think it's abit bit unfair to say that people didn't get on the ladder because they didn't save. Many did only when they started they thought they would need 5k as a deposit. By the time they had saved it two years later the amount required was now 10k. Life isn't always fair but I really felt for those in that situation at the time. On one hand you couldnt afford to get onto the housing ladder and on the other you couldn't afford not to. That's why many maxed themselves to the limit with 100% mortgages and are now paying the price. It's not always the case that those who spent too much deserve everything they get. I know many people who were just victims of unfortunate timing buying at the peak only for the interest rates to rise immediately and now the prices have crashed. None of that was their fault at all.

 

[Karl]

Sorry that what I meant. It only stays on your record now for 5 years. I think you'll find the mortgage issue is not true they can persue you. It's not well known and many fall foul of it. The rules differ on whether it was secured or un secured debt. The way around this is transfering the liabilitly of secured debt onto someone else (ie the banks) so it effectively becomes an unsecured debt. That way the debt dies with the bankrupcy. The problem is that with the period of the housing boom, when people have gone bankrupt there has often been enough money from the sale of the property to cover all the money owed. That's not the case now. I've read many a tale about people who got to their five year post bankrupcy date thinking they were all clear only for a letter to arrive from the bank telling them that they still owed money (ie the difference between what they owed and the price the bank got for the house). There was a programme about it all on either radio 4 or five live I forget which. It's all rather convoluted. The trick apparently is not to give up your house which the banks will ask you to do but you have to engineer a situation where the bank takes it off you. They are then taking over the asset and own the security on which the debt it owed. If you voulentee to give it up the debt stays on your name for which your're still liable. It something like that anyway. Not as straight forward as you might think. These companies charge about £5000 to make sure you do everything the correct (at least legally if nor morally) way. Having never gone through it I'd be lying if I said I were an expert. I just know two people going throught this right now and it's all rather convoluted.

Hi Dom

Well that's news to me !

I spent 12 years in working form various firms of accountants, dealing specifically with insolvency matters (Bankruptcies, VA's, Liquidations, Administrations etc). The rules for Scotland are different from England, but I don't know whether the people you know are being hoodwinked into paying a firm £5k, who are then bamboozling them with "secured this" "unsecured that". A lot of that goes on.

Cheers

Karl

 

[dicktimber]

dom11111,

Now you are getting there...NOTHING IS THERE FAULT.......
mike

 

[Grinding One]

Moms said save 10% of what you make for a raining day...if people would only do it and not cheat themselves with presents all the time....welllll.Dad said save your money and put it to work so you won`t have to work later....Words to live by.
Everything comes to those who can wait....its the impatient man that has the trouble making it in this world.When I came out of school and military service ,I had nothing but education....now I have more tools then Norm Abrahams.Still working out how they all go together...more education...never quite learning.And its never to late to start saving.

 

[dicktimber]

Grinder...
You hit the nail on the head!!

Mike