Spam Journalism – 10 homes a day taken by banks

The Herald on Sunday is engaging in Spam Journalism again. This article about “10 homes a day taken by banks” is a case in point.

For a start the homes aren’t being taken by the banks anywhere. More accurately the story should explore that 10 mortgagees a day have failed utterly to meet their contractual obligations for their lonas and so have forfeited the homes that the banks paid for.

Let me make one thing clear, having worked for a major bank in lending, Banks hate mortgagee sales. They are a last resort for them. They only pursue a mortgagee sale when communications with the customer and attempts to get things back on track have failed utterly.

In my experience when a Bank decides upon a mortgagee sale it is usually because the mortgagee has not faced reality, failed to meet repayments over a long period of time and failed to communicate with the bank, instead trying to fight for something with an ostrich like behaviour when it is clear that they can’t afford the lifestyle they have borrowed to support.

These sorts of customer always pretend like they own the assets they use. Invariably they actually own nothing except debt, which also needs to be repaid. They also have store debt in the form of hire purchase and the most stupid debt of all, that for a car.

Their debt is literally eating them alive and they are in fact a pay day away from insolvency. When the job goes so too does everything the loans and the small monthly payments paid for.

The reality is in most cases mortgagee sales are of homes of people too stupid to have a loan int he first place.