New way to treat the thieving banks

[ecufix]

Maybe we should all do this in our parts of the world Think Free - South Africa - I love the Irish - This should be done at every bank auction around the world , regards

[thered]

I like the way that its OK to borrow the money, but when they dont want to pay it back or cant afford to pay it back it somehow becomes the banks fault

and they are now the villains

[Cod3waX]

simply u buy a house with a mortgage & insurance unless your gonna die before the unexpected happens

[Snowy79]

I've got to agree it's more the fault of the borrower than the banks. I was listening to a discussion on the radio about those that had taken out a loan prior to the crunch. In each case there was a set criteria that had to be achieved before the loan was approved. The money wasn't lent to just anyone. What was highlighted about the majority that had defaulted was they had proven the ability to pay back the loan but of those that defaulted they had left education with lower grades especially in mathematical areas than those that had continued to make their payments. They had proven at the time they could make the payments then once they'd received the loan went out and spent beyond their means and built up more debt leading to a defaulting on the mortgage. Hardly the banks fault as it's not their responsibility to watch your spending.

[thered]

I have probably said before i have seen people lose houses to go on holiday and have a nice xmas so thought it was better to stop paying

Problem was they borrow the money, but are too thick to realize its a 25 year commitment, then after maxing out the mortgage to an inch of its life and living on borrowed time, increasing the term to 30 years and ever increasing payments for the ever increasing topping up they then get to a point when the good life stops and its all spent

Shit i have another 27 years of being skint, best stop paying mortgage the kids need another Ipad

[Kalipo]

Jesus you all sound like Gastons in this thread ..

But i will agree with the points made in the thread..!

But blame must also be partially put on the banks also.. i think more checks should be made to see if these people can afford to pay.. simply checking payslips from the last 3 months is inadequate IMHO.

[rds60h]

There are also a couple of other points about the payments stopping, such as loss of employment or changes of circumstances such as divorce, these points are not taken into account.
Also remember these properties are sold at auction where it is highly unlikely that market value will be achieved. It is just another tool for the rich to get richer by means of taking from the poor.
Can anyone on here truthfully say that it is morally right to profit from the misfortune of an other ?

[GastonJ]

Banks sell bad debt to companies who chase bad debt, and why not? Banks are in the business of managing money, not collecting it - for that they sell on to companies who specialise in collection. When you take out a loan you get a list of the interest rates and the costs should you default on that loan, it's written down. If you don't understand what will happen then don't get a load of any kind. I hate bailiffs *spit* lower than pond scum but at the end of the day the debtor should know what they're getting into and check everything.

If I deposit ?100000 in a bank I expect interest on that money from the bank lending it out. If you then borrow my ?100000 and can't be bothered to pay it back with interest, do you expect me to lose my money?? WTF should I? you borrowed it, you pay it back and the full cost of having the bank chase you for it. At the end of the day when you took the loan and promised to repay that and interest don't expect to get away with my money *shrug*

And as for using wageslips to determine whether you can get a mortgage, when I took mine out the bank only wanted 3 wageslips and a reference from my employer, and I've paid mine back.

[super jumbe]

I like the way that its OK to borrow the money, but when they dont want to pay it back or cant afford to pay it back it somehow becomes the banks fault

and they are now the villains

So whose fault was it when bank got bankrupt and we the citizen paid from our hard earn tax payment? According to loan insurance they will refuse to pay and will find every excuse to help when you need to make payments when on sick or lost your employment, the system is corrupted.

[ecufix]

I have heard a rumor that there is a massive drive to change the way the world uses money , banks and interest, maybe one of you can enlighten us all ? thanks , regards

[GastonJ]

The new way is that we get paid, the government takes over 50% in tax to give to the banks and for their wages/expenses, and the rest the banks just take anyway.

It's all well and good blaming the banks, but at the end of teh day someone has borrowed money on the premise that they will pay it back, they failed to pay it back and so the bank, and the depositors (who after all put money in there) lose out. As a saver and investor I've lost out because the interest rate is so sh*t, luckily I'm making it up on investments, but a lot of old people are losing their incomes over this shambles.

However as a taxpayer I'm also paying for the mistakes of banks and for people not paying their debts. Though ...... generally during the last 20 or so years more people were becoming comfortable, house prices were ricing - peple were making money on houses and generally had more money, which mean that they gap between the haves and have nots was getting closer. What better way to remove money from those who are deemed as "not being worthy" than for bankers to stop lending to each other, call in bad debt and create a crisis? That way the government has a really good excuse to part them from their money.

This crisis has done more to hurt and take money off low and middle income families than those who are rich, and has widened the gap once more, keeping those with money to invest well ahead of those without.... Seems like a sound idea to me. We've seen cuts all over the place, the debt is still rising, those losing out (normal taxpayers) are struggling.... when was the last time you had crowds of millionaires on the streets protesting against the cuts?

[Snowy79]

I might be wrong but I don't know of any mortgage loan that doesn't have the clause in it saying you must have insurance in place to ensure you can pay the mortgage back. Either the borrower is a liar or has taken out insurance then cancelled it as they've come into financial difficulties and stopped paying their insurance in the hope that they will eventually earn enough to continue it. When this hasn't happened they've defaulted on their payments and the banks have done as they said they would. Reposes the property. If you lent your mate money and he promised he was due his wages at the end of the month and would pay you back do you blame yourself when he doesn't give you the money back ?

[bobwill]

I might be wrong but I don't know of any mortgage loan that doesn't have the clause in it saying you must have insurance in place to ensure you can pay the mortgage back. Either the borrower is a liar or has taken out insurance then cancelled it as they've come into financial difficulties and stopped paying their insurance in the hope that they will eventually earn enough to continue it. When this hasn't happened they've defaulted on their payments and the banks have done as they said they would. Reposes the property. If you lent your mate money and he promised he was due his wages at the end of the month and would pay you back do you blame yourself when he doesn't give you the money back ?

You the borrower take out the insurance to cover the bank if you can not afford to pay them back,its not as some people think to cover the borrower if they get into trouble.
But you the borrower has to pay the insurance company any shortfall in the amount that the house make less than you borrowed plus massive charges .
Its a WIN WIN for the banks

[ecufix]

Can somebody please do the maths as to how much money does one actually pay back to the banks over the completed agreed term ?

[GastonJ]

Depends on the rate, very roughly about 2.2 to 3 times the amount you borrowed *if* you go the whole term. I don't liek owing money so mine was gone as soon as possible. Once of my m8's paid his off in 6 years and lived on baked beans for those 6 years . Right now with the interest rate the way it is it's probably not worth paying off if your rate is about 2.5% - keep the money and invest it, you can get more than 3.2% needed to break even and you have cash if you need it.