Reply to: Reposession story

[ace00]

If one of us paid ourselves huge amounts of money which our Ltd Co's didn't really own - like if the Ltd borrowed the money and then paid it to the director - and then the Ltd went under, unable to pay its debts... wouldn't we have to pay the money back by selling our houses and belongings? .............

No. That's why it's called "Ltd."

[zara_backdog]

Generally a repossessed property is sold quickly and cheaply at auction which often leaves a remaining debt for the previous owner, particularly after adding in all the outstanding interest payments and legal fees.

Net result is the poor sod finds himself still in debt, and being chased by debt collection agencies who the bank sold the debt to at a discount. It's a common misconception that you can just hand in your keys and walk away unscathed.

Hum - property is not always sold quickly after a reposession, can be up to 12months - there is a lot of red tape to go through before ther BS can sell the property, or simply they hold on to it for a while - out-come is the poor sod founds him/herself in even more dept.

[Tensai]

.... so they could repossess any time they liked and still get their money back.

Generally a repossessed property is sold quickly and cheaply at auction which often leaves a remaining debt for the previous owner, particularly after adding in all the outstanding interest payments and legal fees.

Net result is the poor sod finds himself still in debt, and being chased by debt collection agencies who the bank sold the debt to at a discount. It's a common misconception that you can just hand in your keys and walk away unscathed.

[thunderlizard]

The bank was never betting on the window cleaner being able to pay his mortgage. They were half expecting him not to be able to pay it: but that it wouldn't make any difference because the house would go up and up in value, so they could repossess any time they liked and still get their money back. Maybe they still can. Creditworthiness has little to do with it.

[tim123]

If one of us paid ourselves huge amounts of money which our Ltd Co's didn't really own - like if the Ltd borrowed the money and then paid it to the director - and then the Ltd went under, unable to pay its debts... wouldn't we have to pay the money back by selling our houses and belongings? What I mean is, are all these bankers that have been getting huge bonuses for years, funded by fake money, going to be made to give any of it back... or is it just written off and they can keep it? What is the difference? Why are some of these schemes classed as fraud, and some as just normal banking practise?

They don't give it to themselves, the sharehlders vote on whether they should have it. Just ocasionally, the shareholders vote no.

tim

[tim123]

Nice bit of selective quoting. To be fair to him, he also said this:



and this:



Don't forget, he went out and cleaned windows for a living, unlike some of the flipless tosspots out there...

DP was suggesting that the bank, not the buyer, were at fault here.

tim

[bobspud]

If you read between the lines this guy was already up to his eyes in poo from previous credit problems, and they have forced the sale having found he now had an asset to seize...

[PM-Junkie]

Isn't the stunning piece of news here that they gave a mortgage to someone who actually had a job? I didn't think they did that any more...

[dinker]

If the banks refused to lend him money all the Lefties would be whinging that it wasn`t "fair", that he was being "discriminated" against for being thick and that he was being "excluded" from the financial system. Recognise any of these key words? They are the tools of Marxist oppression.

[DaveB]

Don't knock it. Good money to be made in window cleaning. Especially if you have a niche market.

You can always sell the film rights if the work dries up!

[threaded]

Don't knock it. Good money to be made in window cleaning. Especially if you have a niche market.

[ratewhore]

If one of us paid ourselves huge amounts of money which our Ltd Co's didn't really own - like if the Ltd borrowed the money and then paid it to the director - and then the Ltd went under, unable to pay its debts... wouldn't we have to pay the money back by selling our houses and belongings? What I mean is, are all these bankers that have been getting huge bonuses for years, funded by fake money, going to be made to give any of it back... or is it just written off and they can keep it? What is the difference? Why are some of these schemes classed as fraud, and some as just normal banking practise?

That's a fundamental question which deserves a thread of it's own.

[dang65]

If one of us paid ourselves huge amounts of money which our Ltd Co's didn't really own - like if the Ltd borrowed the money and then paid it to the director - and then the Ltd went under, unable to pay its debts... wouldn't we have to pay the money back by selling our houses and belongings? What I mean is, are all these bankers that have been getting huge bonuses for years, funded by fake money, going to be made to give any of it back... or is it just written off and they can keep it? What is the difference? Why are some of these schemes classed as fraud, and some as just normal banking practise?

[ratewhore]

Nice bit of selective quoting. To be fair to him, he also said this:

"I feel sad that the house is going, but I hope I will be able to come to terms with it. I have had bigger disappointments in my life,"

and this:

I will be sorry when it has gone, but it is not the end of my world. It is only bricks and mortar in the end, and nobody has died.

Don't forget, he went out and cleaned windows for a living, unlike some of the feckless tosspots out there...

[AlfredJPruffock]

http://www.guardian.co.uk/money/2009...property-money

Paul McHugh began the new year with the prospect of his home going under the hammer after he had experiencing the trauma of repossession. The 40-year-old self-employed window cleaner is set to lose his former council house in Castleford, West Yorkshire, on Wednesday, when bailiffs repossess it.

Paul McHugh was given a £20,000 incentive from the council to buy his property, but he ran into financial difficulty because he had a financial asset for the first time in his life and was chased by creditors for previous unpaid bills. "I signed a self-certifying note to take out the mortgage, but I don't think I was the sort of person who really should have had a mortgage," he adds.


No shlt sherlock.



This is the sort of crap the bankers have been creaming money on and now we, the tax payer, have to foot the bill.

Only "fair".

Shoorlay shum mishtake ?