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Strategic Mortgage Default 101


YouKnowWhatIMeanLike

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Apr 13, 2011
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What's the best way to plan a strategic mortgage default? If government now forces the banks to write down some of the mortgages in arrears it doesn't make a lot of sense for healthy mortgages holders to continue to pay for properties in negative equity either. Is it a good time to engage in a strategic mortgage default and drive down one's mortgage debt and force the lender to take a hit as well?
 


Dublin 4

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Feb 6, 2011
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Yer neck needs a buff-up


 

firefly123

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Dec 8, 2009
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28,176
Step 1. Buy a modest home for your family within range of work at a ridiculous price because that is what you were told was the sane thing to do by 'experts'.

Step 2. Lose your job or take paycuts due to collapse of economy.

Step 3. Listen to smug gits who didn't but a house because they couldn't afford to or were pissing their money away at the time but who now all claim to be financial geniuses who saw it coming.

Step 4. Worry like crazy that you and your children will become homeless because everyone is paralysed with fear that someone somewhere might be scoring out of this debacle.

Step 5. Watch as those responsible for it all ride off in to the sunset, or worse, get feted in the media as they provide 'solutions'.

Step 6. Buy a high powered rifle and look for a church tower....
 
Last edited:

emulator

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Oct 20, 2010
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10,260
Step 1. Buy a modest home for your family within range of work at a ridiculous price because that is what you were told was the same thing to do by 'experts'.

Step 2. Lose your job or take paycuts due to collapse of economy.

Step 3. Listen to smug gits who didn't but a house because they couldn't afford to or were pissing their money away at the time but who now all claim to be financial geniuses who saw it coming.

Step 4. Worry like crazy that you and your children will become homeless because everyone is paralysed with fear that someone somewhere might be scoring out of this debacle.

Step 5. Watch as those responsible for it all ride off in to the sunset, or worse, get feted in the media as they provide 'solutions'.

Step 6. Buy a high powered rifle and look for a church tower....
I'm surprised every day that number 6 hasn't happened already....
 

Taxi Driver

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What's the best way to plan a strategic mortgage default? If government now forces the banks to write down some of the mortgages in arrears it doesn't make a lot of sense for healthy mortgages holders to continue to pay for properties in negative equity either. Is it a good time to engage in a strategic mortgage default and drive down one's mortgage debt and force the lender to take a hit as well?
But are not going to force the banks to do anything! The targets are relative to offers to customers; not what the banks actually do. The Central Bank has said they recommend that banks look at a "revised principal sum" as part of the suite of measures to be assessed when trying to improve the sustainability of mortgages in arrears. This is a long long way from "force".
 

YouKnowWhatIMeanLike

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But are not going to force the banks to do anything! The targets are relative to offers to customers; not what the banks actually do. The Central Bank has said they recommend that banks look at a "revised principal sum" as part of the suite of measures to be assessed when trying to improve the sustainability of mortgages in arrears. This is a long long way from "force".
it's a reality and it's way overdue. I know a number of cases who got a little present from the banks recently. it's not sustainable to pretend a house has a value of 250k or 400k if it actually can't be sold at 125k or 250k respectively. I understand that who ever raked in the initial amount is a happy camper now but the people in negative equity feel like real ejeets to be forced to continue to service these fantasy mortgages.
 

Dunlin3

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it's a reality and it's way overdue. I know a number of cases who got a little present from the banks recently. it's not sustainable to pretend a house has a value of 250k or 400k if it actually can't be sold at 125k or 250k respectively. I understand that who ever raked in the initial amount is a happy camper now but the people in negative equity feel like real ejeets to be forced to continue to service these fantasy mortgages.
What's negative equity got to do things? It's about people's ability to pay. If you don't need to move and you can afford to service the debt then it's tough I'm afraid.
 

YouKnowWhatIMeanLike

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Forced mortgage write downs are a reality ? Great , since when?
I am not allowed to talk about details the banks have included non-disclosure agreements in the deals. but retroactive mortgage write down deals are here to stay it's great! The question now is how can regular mortgage holders make the most of these deals.
 
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ffc

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What's negative equity got to do things? It's about people's ability to pay. If you don't need to move and you can afford to service the debt then it's tough I'm afraid.
That's absoloutely true, but who assesses ability to pay.

We all know what will happen with the majority of Buy To Lets. The lads will declare zero income from the property, while taking cash from the tenants ( "Reduced rate, don't yer know, keep it quiet from the tax man, it's good for both of us, blah, blah, blah"). Then sit tight for a couple of years paying nothing off the mortgage, wait for the bank to approach, plead poverty, look for a reduction in the outstanding amount or interest free lump, repeat ad nauseum.
If, ultimately, after years of coining in rent and paying nothing back, the bank, eventually repossess, set up a sham company in the wife's name and buy the property back for a fraction of the original, while declaring bankruptcy in the UK, happy days.
 

Bonsai Experiment

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I am not allowed to talk about details the banks have included non-disclosure agreements in the deals. but retroactive mortgage write down deals are here to stay it's great! The question now is how can regular mortgage holders make the most of these deals.
Okay thanks for that, we'll get back to you.
 

DuineEile

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Aug 29, 2010
Messages
14,939
Step 1. Buy a modest home for your family within range of work at a ridiculous price because that is what you were told was the sane thing to do by 'experts'.

Step 2. Lose your job or take paycuts due to collapse of economy.

Step 3. Listen to smug gits who didn't but a house because they couldn't afford to or were pissing their money away at the time but who now all claim to be financial geniuses who saw it coming.

Step 4. Worry like crazy that you and your children will become homeless because everyone is paralysed with fear that someone somewhere might be scoring out of this debacle.

Step 5. Watch as those responsible for it all ride off in to the sunset, or worse, get feted in the media as they provide 'solutions'.

Step 6. Buy a high powered rifle and look for a church tower....

Ready, aim ...



D
 

DuineEile

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Aug 29, 2010
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14,939
What's negative equity got to do things? It's about people's ability to pay. If you don't need to move and you can afford to service the debt then it's tough I'm afraid.
It's only tough if people don't take matters into their own hands.

D
 

Merovingian

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Apr 27, 2010
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That's absoloutely true, but who assesses ability to pay.

We all know what will happen with the majority of Buy To Lets. The lads will declare zero income from the property, while taking cash from the tenants ( "Reduced rate, don't yer know, keep it quiet from the tax man, it's good for both of us, blah, blah, blah"). Then sit tight for a couple of years paying nothing off the mortgage, wait for the bank to approach, plead poverty, look for a reduction in the outstanding amount or interest free lump, repeat ad nauseum.
If, ultimately, after years of coining in rent and paying nothing back, the bank, eventually repossess, set up a sham company in the wife's name and buy the property back for a fraction of the original, while declaring bankruptcy in the UK, happy days.
Buy to let should not be subject to write down. No equity support should be advanced. Split mortgage at best. Repossession should be the norm. The owners of the banks, the shareholders, got nuked. Why should speculative investors (and I am one such person) receive special attention. Homeowners need a break on their primary residence, split mortgage. Write downs in this country will lead to anarchy with mortgage holders outside the PAYE net ducking and diving about income and ability to pay
 

Disillusioned democrat

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Mar 16, 2010
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Ireland is a cess pit...it really is. There are brass necked chances out there whose wet dream has now come true....buy a house you cant/won't afford and now get someone else to pay for it while you continue to live beyond your honest mean, while those paying for your house struggle with tax, mortgage, health insurance, etc.
The politicians are a very lazy bunch of tossers if this is the best they can up with.
 

ShoutingIsLeadership

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Jan 17, 2011
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50,433
Another mortgage thread? Seriously, was the 'end game' one created this morning not a good enough home for this?
 

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