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Banks set spending limits for families in mortgage trouble

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Comments

  • #152
    [Deleted User]
    Posts: 31,118 ✭✭✭✭ [Deleted User]


    The sad fact is that everyone will have to learn to live within their means and not their dreams!

    If more people did that, then house prices would have remained at a sane price (& size) that was affordable for the majority rather than (for a while) at totally unsustainable levels.


  • #153
    questionmark?
    Registered Users, Registered Users 2 Posts: 3,082 ✭✭✭questionmark?


    Bank advises people in financial trouble to put their priority monthly payments for a secured debt ahead of non priority payments shocker.

    The biggest shock is that people would even need to be told this.


  • #154
    goodie2shoes
    Banned (with Prison Access) Posts: 702 ✭✭✭goodie2shoes


    JimiTime wrote: »
    As a mortgage broker who knew they were all bad choices, I'm assuming you didn't broker any mortgages that you KNEW were bad decisions? If so, kudos to you. If you did, then is it a case of, I didn't kill the them, I just gave them the cool aid?

    i always advised people against over-extending themselves. often this advice cost me business. however if clients insisting on taking out large mortgages, then that was ultimately their choice however regrettable.
    some folk just wont be told. as they saw it, it was my job to get them the finance not to question it.


  • #155
    green123
    Registered Users, Registered Users 2 Posts: 1,708 ✭✭✭green123


    so people who cant afford to pay their mortgages shouldnt have to budget ?

    they should be allowed to continue living the high life and not bother paying back what they owe ?

    are people really trying to argue that ?

    when you took out a mortgage the deal was that if you cant afford to pay it back then your home would be at risk.

    the bank are doing you people a favour by not repossessing the house


  • #156
    goodie2shoes
    Banned (with Prison Access) Posts: 702 ✭✭✭goodie2shoes


    green123 wrote: »
    so people who cant afford to pay their mortgages shouldnt have to budget ?

    they should be allowed to continue living the high life and not bother paying back what they owe ?

    are people really trying to argue that ?

    when you took out a mortgage the deal was that if you cant afford to pay it back then your home would be at risk.

    the bank are doing you people a favour by not repossessing the house

    people can always rent.
    i know most people hate the idea of enriching some greedy landlord, but needs must .....


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  • #157
    bbam
    Closed Accounts Posts: 7,410 ✭✭✭bbam


    green123 wrote: »

    the bank are doing you people a favour by not repossessing the house

    The banks are doing no one a favour and you need to be clear on that. Firstly isn't there a moratorium on repossessions, and then the banks realise that in many cases they way over-lent on houses that are now only worth a fraction of their mortgaged value.
    The banks well know they are better leaving people in the houses and getting whatever they can, while they can.


  • #158
    goodie2shoes
    Banned (with Prison Access) Posts: 702 ✭✭✭goodie2shoes


    bbam wrote: »
    The banks are doing no one a favour and you need to be clear on that. Firstly isn't there a moratorium on repossessions, and then the banks realise that in many cases they way over-lent on houses that are now only worth a fraction of their mortgaged value.
    The banks well know they are better leaving people in the houses and getting whatever they can, while they can.

    despite what people think, the banks have been quite patient with those in arrears.
    i know of no other country where this would be allowed.
    having worked for a uk bank/building society i can tell you once a customer went 6 months into arrears, repossession proceedings were instigated.

    if (unfortunately) people have bought a property that they can no longer afford, then the logical decision is to rent at a price they can.


  • #159
    K-9
    Registered Users, Registered Users 2 Posts: 43,313 ✭✭✭✭K-9


    The banks are patient with those in arrears because it means some type of cash flow. Why call in an asset that the security is worth a pittance of? That means writing off bad debts.

    Mad Men's Don Draper : What you call love was invented by guys like me, to sell nylons.



  • #160
    [Deleted User]
    Posts: 31,118 ✭✭✭✭ [Deleted User]


    K-9 wrote: »
    The banks are patient with those in arrears because it means some type of cash flow. Why call in an asset that the security is worth a pittance of? That means writing off bad debts.

    The last thing the banks want is a large number of houses in their possession that they have to pay property tax and maintain etc. Plus they would be reluctent to dump them onto the market as this would devalue the remainder of the mortgaged houses even more.


  • #161
    Fulton Crown
    Banned (with Prison Access) Posts: 2,493 ✭✭✭Fulton Crown


    who_me wrote: »
    Exactly this. The irony of banks giving financial advice to anyone these days is laughable. It would have been nice if they'd shown some of that fiscal prudence themselves over the last 10/15 years.

    What a stupid post !

    The fact is the Banks SHOULD have been giving fin.advice years ago.

    The fact that they are NOW giving it is good and necessary.

    Yes they overstepped the mark and left us all in the lurch....Goggin and the lads...yeah Goggin who got a wedge of circa 2 million and a huge pension...an left us all in the ****e.

    Fair or wha ?


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  • #162
    Ryder
    Registered Users, Registered Users 2 Posts: 995 ✭✭✭Ryder


    goodie2shoes wrote: »

    fair enough but how do you think Tom in his 3 bed semi & ford focus who never got carried away during the boom/bubble, will feel when asked to subsidize Jim in his 7 bed detached, with 3 cars in the driveway?

    i think i know the answer. it starts with "GO" and ends with "YOURSELF".
    you're an absolute gem, you really are. For all your forsight and financial mastery, you will pick up the tab like everyone else. Picking on jimmy in his 7 bed mansion, 3 cars in the driveway etc really won't cut it.....and I suspect you know it.

    The low hanging fruit is long gone. The people who lost their jobs have defaulted by e I presume. But there is a big reservoir of people who are one more PS cut/ interest hike etc away from default. What happens then?. Restructuring at the very least, you pick up the tab....repossession, you pick up the tab. This will become clearer and clearer as time goes on....I suspect you will have lots more lessons for your 5yr old


  • #163
    [Deleted User]
    Posts: 17,378 ✭✭✭✭ [Deleted User]


    Meh.. You're getting a deal on a mortgage you agreed to but can't pay anymore. If that deal includes some austerity measures, then so be it. Take the deal or leave it.


  • #164
    horsemaster
    Registered Users, Registered Users 2 Posts: 123 ✭✭horsemaster


    They don't have to use the bank if they feel its not right. They always have a choice. Sometimes people need to be told what to do instead of them using commonsense in the first place. If they feel that the bank is infringing on their personal lives, then just don't use the bank. If they think they can be disciplined and be responsible, then they don't need to use this bank. But if they can't, might this bank is doing a great service to them.


  • #165
    bbam
    Closed Accounts Posts: 7,410 ✭✭✭bbam


    goodie2shoes wrote: »
    despite what people think, the banks have been quite patient with those in arrears.
    i know of no other country where this would be allowed.
    having worked for a uk bank/building society i can tell you once a customer went 6 months into arrears, repossession proceedings were instigated.

    if (unfortunately) people have bought a property that they can no longer afford, then the logical decision is to rent at a price they can.

    Don't be fooled, the banks are doing whatever is in their best interest. If the banks thought it would benefit them more then they would be kicking families out on their ass wholesale with little regard for them. The only patience the banks are showing is on their own behalf, patiently waiting until it suits them better to change tactic.

    And don't think the banks have learned either.. they are still giving out huge loans into the agri sector, based on the sketchiest of business plans and newspaper reports that farm incomes rose 30% last year.


  • #166
    bbam
    Closed Accounts Posts: 7,410 ✭✭✭bbam


    goodie2shoes wrote: »
    despite what people think, the banks have been quite patient with those in arrears.
    i know of no other country where this would be allowed.
    having worked for a uk bank/building society i can tell you once a customer went 6 months into arrears, repossession proceedings were instigated.

    if (unfortunately) people have bought a property that they can no longer afford, then the logical decision is to rent at a price they can.

    Don't be fooled, the banks are doing whatever is in their best interest. If the banks thought it would benefit them more then they would be kicking families out on their ass wholesale with little regard for them. The only patience the banks are showing is on their own behalf, patiently waiting until it suits them better to change tactic.

    And don't think the banks have learned either.. they are still giving out huge loans into the agri sector, based on the sketchiest of business plans and newspaper reports that farm incomes rose 30% last year. Staff are still being pushed to hit their "sales" targets on loans to get commission into the branch


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