Friday, 20 February 2009

Repossession

There was a man on the News tonight whose house had been repossessed by his mortgagee because he couldn't keep up the payments. Leave aside the individual circumstances, fair enough, we're all aware of that possibility, but it's always puzzled me why a lender would do this - surely better to hang on, waive or reduce the payment schedule until times get better, rather than be saddled with a hard-to-sell property at the bottom of the market, with absolutely no prospect of an income stream?

My eyes have cleared. This man explained that the lender had auctioned the house. Surprise, it fetched less than the outstanding amount of his mortgage. So, they're going to take him to court for the shortfall.

Words fail me.

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