Who is going to pay the employees?.
Great idea ,people need to stand up to the banks as they no buyers waiting to offer more for distressed property. Sock it to them.
Can we also have a Union for all of those with mortgages who are currently paying them....to lobby on our behalf to avoid us having to pay for the mortgage debt relating to those that can't pay as well as those than won't pay?
I don't think a union would work. Everyone's situation is different and there's a plethora of orgs and these forums to give all the advice (for which I'm most grateful for) one could possibly need to negotiate with a bank.
In my own situation, I clearly laid out the research I did in relation to going bankrupt in the UK and how I would choose that action unless I got another interest only deal on my mortgages. The bank promptly supplied me another interest only contract which I signed.
They weighed up the negative equity, repossession costs, selling in a slow market etc etc, versus me continuing to pay interest only (and servicing the loan in that way) and they choose the latter..
The union/association could effectively destroy the lenders business by mass default on repayments and it would be impossible to repossess and sell all of the properties involved due to the amount of borrowers in question.
I am just wondering what are the real barriers to such a proposal.
Thanks.
Totally unacceptable, since at the end of the day it is the taxpayers and not some unknown entity that would be on the hook for this - in other words your neighbours, work colleagues, family members and so on!
Ok good point. But do the lenders not have funding already to cover such losses?
And there would also be the extra money people would have to spend, and in turn this would boost the economy. Consumer confidence would be up and maybe, just maybe the creation of jobs, more taxes to the exchequer etc.
The banks have already used most of the bailouts to plug their balance sheets. These 'write offs' you seek will come from the taxpayers pocket so it's not a runner this time I'm afraid.
Totally unacceptable, since at the end of the day it is the taxpayers and not some unknown entity that would be on the hook for this - in other words your neighbours, work colleagues, family members and so on!
More support for the groups trying to assist genuine hardship cases is the way to go in my view, not forming a union .
Eh, this would be for 'genuine hardship' cases. And as stated it would only
be a starting point for deals.
My suspicion is that people without any/large/unsustainable mortgages have little to none sympathy, as they sometimes have those condescending superior thoughts of 'I paid so you have to' or 'your own fault for being greedy and taking more than you can handle'.
The reality mostly is genuine people will be banded together with the minority of 'wont pays' in the public eye. There are many groups assisting the genuine hardship cases but the banks seem to be winning always. Something has to be done,and I believe it definitely will. It's just a matter of who and when and how. Obviously my little dream scenario is unrealistic legally,morally and financially for the taxpayer, but somebody somewhere with the gumption will start something soon.
A possible angle could be to set up a group for the customers of a specific lender. For example, the IBRC mortgage holders group or the Bank of Scotland mortgage holders group. You could compare notes. See what deals are being offered. If you see repeated breaches of the Mortgage Arrears Code, you could report it to the Central Bank. In the case of IBRC, you could lobby politicians for fast write off of shortfalls where a home is surrendered.
If your group worked successfully, you could inspire similar groups to set up.
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