Repossesion Of Property
The Citizens Advice charity has released a report which claims that sub-prime mortgage lenders are the most eager of mortgage lenders to claim repossesion of propety from morgagees who have been unable to keep up with their repayments. They suggest that many of these mortgages were established with the knowledge that the mortgagee would struggle to repay these loans. This is a similar situation to the one in the US financial markets that has led to the worldwide credit crunch.
“dubious advice from brokers, irresponsible lending decisions and aggressive arrears management by sub-prime lenders are driving the current increase in mortgage arrears” according to the report
I have long felt that all of the banks and mortgage lenders are rather too quick to jump on their borrowers in the event of late and defaulting payments. They all claim to help and support their borrowers when they are having difficulty paying their debts but the reality seems to be that they have little interest in working with their customers to overcome those difficulties. Some time ago I wrote about a series of articles on the BBC.co.uk website which was a diary of a lady who was attempting to get through a difficult financial period due to her having lost her employment, temporarily, through having a baby. The Banks were unsympathetic and very unhelpful even though she had every prospect of being able to pay all her outstanding debts in a matter of a few months.
It seems crazy that banks would not work with customers to get full repayment of their debts. It surely makes sense to work with the customer rather than doing their best to bankrupt the customer and end up with a settlement that is less than what could have been achieved by assisting their customers.
Their are legions of successful people who have rebuilt their lives after financial disaster. I have no doubt that when it comes to investing those millions they make they do remember which banks and creditors tried to help them when things were tough. We should all do that and avoid using banks and other lenders who when it comes to difficult times are unhelpful. None of us know when we might suddenly find ourselves in financial difficulty. The most common reasons are divorce, redundancy and ill health. None of those are by choice, nobody wants to suffer financial hardship but if we do we can reasonably ask that the bank that was so keen to lend us money when things were going well should be supportive and help us when we really need lenders to be understanding. It is in their interests as much as ours. Sadly as we have seen in the whole credit crunch debacle. Banks, in general, are run by a bunch of greedy, self-centred mega-bonus seeking idiots who cannot even work out simple sums on a calculator that a child would find simple to do.
Banks that genuinly want to work with their customers through the difficult times and not just through the easy times will have the opportunity to develop a lifetime customer and that seems to be in their interests. It seems odd that none of them seem to care about this.
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