The Housing MeltDown.

Posted on June 23, 2008. Filed under: News | Tags: , |

It is a very dirty word . How fortunes have changed suddenly and those who have not got out can only wait for the sword or axe to fall on them. The chickens are coming home to roost.

They are unable to get out as they are unable to sell their house because of the very low price or low demand. People are expecting the housing market to crush and prices tumbling further down due to the credit crunch and the rise in the inflation.It is a buyers market .

They are unable to sell and unfortunately are unable to pay their monthly mortgages.No one can really help them now.

They are caught with their pants down and can only wait for the inevitable rising of the financial tide to drown them.

Their dreams of getting rich all vaporized into thin air and now they realized the folly of listening to those property agents with vested interest and the glitz portrayed in the media.

I cannot understand why some banks in the UK can give out loans to buy houses without checking out their ability to repay their loans or giving out loans with high interest rates to those who do not qualify for the loans.

This is inviting a major disaster to happen as some of those banks have recently fallen on bad times and need to be rescued by the government.

Once seen as a sure-fire way of making a small fortune, newly-built flats have become the worst victims of the housing market meltdown.

A flat in the block sold for £238,000 in 2006 is now been resold at auction for just £71,000. Sometimes , there are no bids even during an auction and remain stuck with the bank.

In the car sector, many have defaulted on their loans and the banks and finance company’s godowns are full of repossessed cars until there is no more space for them. They are simply issuing lawyer’s letter of intent to sue the hirer instead.

The hard times is now upon us and everyone of us will have to cut corners to survive. The spiralling of oil prices ,goods and services is a grave concern and effects everyone especially the poor.

Reference and thanks to ;-

http://www.dailymail.co.uk/news/article-1028492/A-flat-block-sold-238-000-2006-Now-8217-s-resold-auction-just-71-000.html

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