Saturday, November 15, 2008

Jingle Mail in the UK

by Bill McBride on 11/15/2008 09:20:00 AM

From the Financial Times: Banks see rise in voluntary repossessions

Banks are seeing an increase in the numbers of homeowners deciding voluntarily to hand back their properties because they cannot afford to keep up mortgage payments.

Voluntary repossessions involve the bank selling the property at auction but this will not show up in official figures as a repossession because there has been no court order.
[A] mainstream mortgage lender ... said it had seen cases of voluntary repossessions jump from 10 a month in January and February to 55 a month in September and October....

Another big bank said it had seen a rise - from a low base - in voluntary repossessions by consumers who faced financial problems. "This is consumers acting to manage their exposure to a downturn," the lender said.
The Council of Mortgage Lenders, the industry body, said it had no data but there was some anecdotal evidence that voluntary repossessions were increasing.
It's not clear if these homeowners can afford the mortgage, but are "walking away" because they are underwater - or if they can no longer can afford the mortgage due to hardship or rising mortgage costs. Whichever ... it seems there are many ways to leave your lender!
Just slip out the back, jack
Make a new plan, stan
You dont need to be coy, roy
Just get yourself free
Hop on the bus, gus
You dont need to discuss much
Just drop off the key, lee
And get yourself free

Paul Simon, 50 ways to leave your lover