Negative Equity Loan Puts Firm On Defensive
A mortgage firm in the UK has a negative equity product coming out and they are having to defend the decision. "To a certain extent, the product is ideal for first-time buyers who don’t know who to believe in terms of what is going on in the housing market at the moment."
The growing numbers of foreclosures aren't a worry, says senior technical manager Ray Boulger. "Boulger admits the figures are a source of concern but says none of the lenders he had spoken to have mentioned an increase in repossession activity to him."
"James Cotton, mortgage specialist, (was) asked whether it would be a product he would recommend:'It is difficult to say without all of the details but if people are really concerned about whether they can afford to get a mortgage the best advice is still don’t get a mortgage.'"
3 Comments:
This is just what the market needs: more liquidity being provided to marginal buyers ! Yay ! Bring it on !
The stronger the punch the worse the hang over !
So for now it is 'negative equity' loans... I suppose next it will be 'negative payment' loans... they PAY YOU to take the house & mortgage.
dryfly,
In Texas, after the bust, it was almost that way. Banks would do anything to get rid of repo's.
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