Missed 2 payments? We'll take your equity thanks.

Nov 10, 2008 2 Replies

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M Holmes 17 years ago

A rather extraordinary ruling:

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The gist seems to be that there's a law whereby a lender can, withjout a Court order, sell the property on two missed payments and then kick out the borrower for trespassing.

More weirdly, they can have the equity too.

I guess companies are going to have their lawyers find more and more of this as the crisis intensifies.

FoFP

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Troy Steadman 17 years ago

They don't "have" the equity. They can recover what they are owed. "As the crisis intensifies" (as you put) the equity will increasingly fall short of the liability.

The banks sit on their hands for 20 years until the defaultee has built up some equity in another property and take that off him as well :)

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Jonathan Bryce 17 years ago

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Where there's any equity to take.

At today's auction, the places were going for approx 2001-2002 values.

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