5 ms·

Reads like: "I made poor decisions, over leveraged myself, and then I lost everything... Now I expect others to take the fall." Lesson learned. Be super caref

by maerF0x0 11mo ago

Reads like: "I made poor decisions, over leveraged myself, and then I lost everything... Now I expect others to take the fall." Lesson learned. Be super careful who you open contracts with. Marriages are a coin toss. Would you put your total financial health up to a coin toss? Similar point about how much cashflow requirements you take on. (Can you pay the mortgage on your own? Are you ready to take on roommate(s) to fill your ex's place?) remainder from the article showing this guy just failed to do the right thing: > "I can imagine that customers are really worried and distressed if they're facing financial difficulty, but they don't have to go through it alone," Ms Hutchins said. > "The earlier they get in touch with their mortgage lender, the more support and help that that lender can give them and the more likelihood they have of getting back up to date with their mortgage." > Options offered by lenders, she said, included reduced mortgage payments to allow time to get back on track, budgeting and other tools to understand "their full financial situation" and advice about debt charities and support organisations.

thaumasiotes 11mo ago
> remainder from the article showing this guy just failed to do the right thing: Huh? That's a quote from a banking spokesperson. It's not even related to any of the (several) stories in the article - it's a quote she gave to the BBC. Assuming that by "this guy" you mean the first guy mentioned in the article, he had an interest-only mortgage. So sure, he was overextended, but exactly how much accommodation do you think he was going to get? The second guy did have an accommodation with his bank (also on an interest-only mortgage), and it is... he'll be repossessed if he goes more than eight thousand pounds into arrears. The first guy seems to have a legitimate grievance. He wasn't allowed to sell the home to cover the mortgage. Here's the way the article actually ends: > As for Mr Da Costa Diogo, his bank has repossessed the property. > In the same month it was repossessed, the BBC saw a similar three-bedroom property in the same Thetford street as Mr Da Costa Diogo's on the market for £160,000 - almost double the amount he owed.
- throwawayffffas 11mo ago
  All of them seem to view the repossession as the worst thing that could possibly happen. Though if the repossession covers the remainder of the loan it's really not, they are going to be free of debt again. Their credit score is going to take a hit which will make renting harder, but not impossible. The first guy for example couldn't possibly hope to get a better outcome. He is no longer paying a mortgage on his ex-wife's house.
  - thaumasiotes 11mo ago
    What are you talking about? The better outcome that he should have gotten is that he sells the house, covers the mortgage, gives up half the profit to his estranged wife, and still has forty thousand pounds left over.
    - throwawayffffas 11mo ago
      For that to happen his estranged wife would have to agree, since she did not the best outcome, is the house gets repossessed covers the mortgage and he can go on with his life.
- itsdrewmiller 11mo ago
  Seems like there must be a way to get his ex-wife taken off the mortgage if she’s actually abandoned the property and moved across the world. I can imagine it might be a tricky thing to navigate though.
marcosdumay 11mo ago
> Reads like: "I made poor decisions, over leveraged myself, and then I lost everything... Now I expect others to take the fall." Interest-only mortgages shouldn't exist. They are predatory and the people that take them just don't have the discernment to make that decision. (I'm honestly surprised that they exist at the UK.)
- maerF0x0 11mo ago
  Why not? You can lease a car. IMO an interest-only mortgage is basically renting with upside to the equity, which is something the US seems to be very keen on getting everyone to have some skin in the realestate game. I'm not really into governments being paternalistic so I'd rather see people be allowed to choose poorly, but they also need to be able to suffer at least some consequences.
  - bdangubic 11mo ago
    can you leave the keys to the house after my interest-only loan expires in 3 years? :)
    - maerF0x0 11mo ago
      basically renting, not exactly the same. The point is interest only loan is Renting + Equity Exposure. It's a good move if you are experiencing the price appreciation growing faster than your downpayment. You can enter the market price exposure before you get priced out. And if you're right about the direction it's heading you can make money (relative to renting) so long as your outflow is similar to renting (across the time span, rents go up...)
deleted 11mo ago
[deleted]

thaumasiotes 11mo ago

> remainder from the article showing this guy just failed to do the right thing: Huh? That's a quote from a banking spokesperson. It's not even related to any of the (several) stories in the article - it's a quote she gave to the BBC. Assuming that by "this guy" you mean the first guy mentioned in the article, he had an interest-only mortgage. So sure, he was overextended, but exactly how much accommodation do you think he was going to get? The second guy did have an accommodation with his bank (also on an interest-only mortgage), and it is... he'll be repossessed if he goes more than eight thousand pounds into arrears. The first guy seems to have a legitimate grievance. He wasn't allowed to sell the home to cover the mortgage. Here's the way the article actually ends: > As for Mr Da Costa Diogo, his bank has repossessed the property. > In the same month it was repossessed, the BBC saw a similar three-bedroom property in the same Thetford street as Mr Da Costa Diogo's on the market for £160,000 - almost double the amount he owed.

throwawayffffas 11mo ago
All of them seem to view the repossession as the worst thing that could possibly happen. Though if the repossession covers the remainder of the loan it's really not, they are going to be free of debt again. Their credit score is going to take a hit which will make renting harder, but not impossible. The first guy for example couldn't possibly hope to get a better outcome. He is no longer paying a mortgage on his ex-wife's house.
- thaumasiotes 11mo ago
  What are you talking about? The better outcome that he should have gotten is that he sells the house, covers the mortgage, gives up half the profit to his estranged wife, and still has forty thousand pounds left over.
  - throwawayffffas 11mo ago
    For that to happen his estranged wife would have to agree, since she did not the best outcome, is the house gets repossessed covers the mortgage and he can go on with his life.
itsdrewmiller 11mo ago
Seems like there must be a way to get his ex-wife taken off the mortgage if she’s actually abandoned the property and moved across the world. I can imagine it might be a tricky thing to navigate though.

marcosdumay 11mo ago

> Reads like: "I made poor decisions, over leveraged myself, and then I lost everything... Now I expect others to take the fall." Interest-only mortgages shouldn't exist. They are predatory and the people that take them just don't have the discernment to make that decision. (I'm honestly surprised that they exist at the UK.)

maerF0x0 11mo ago
Why not? You can lease a car. IMO an interest-only mortgage is basically renting with upside to the equity, which is something the US seems to be very keen on getting everyone to have some skin in the realestate game. I'm not really into governments being paternalistic so I'd rather see people be allowed to choose poorly, but they also need to be able to suffer at least some consequences.
- bdangubic 11mo ago
  can you leave the keys to the house after my interest-only loan expires in 3 years? :)
  - maerF0x0 11mo ago
    basically renting, not exactly the same. The point is interest only loan is Renting + Equity Exposure. It's a good move if you are experiencing the price appreciation growing faster than your downpayment. You can enter the market price exposure before you get priced out. And if you're right about the direction it's heading you can make money (relative to renting) so long as your outflow is similar to renting (across the time span, rents go up...)

deleted 11mo ago

[deleted]