Apparently tonight 10/06/2004 on today tonight at 7pm is an article on banks winding up on defaulting properties.[blush2]
So this article is about banks doing what they are leagally allowed to do and if they were smarter would do a lot more quickly than they currently do.
If you are in default (typically you have not made a payment for at least 90 days, more like 180 days) what more can you expect.
Keep in mind if they are PPOR houses you have many avenues to show hardship or ask for compassonite treatement via UCCC rules so I can’t see how somebody can get to a default stage without being an absolute basket case.
People forget that Bank coustomer service levels are actually very high. Look at banking 20 years back and look at what we have now:
You can use an ATM 24/7
eftpos
online banking
24 hour approval on home loans
margin lending on shares
low mortgage margins
higher mortgage gearing (100% LTV)
redraw
LOC
offset
the list is endlessIMHO opinion customer service levels are only low for those
who prople don’t have any money…..ie the customers the banks don’t want or need.The fact it is on Today Tonight means is will be a complete fabrication anyway.
As for you commnets about the people with no money being the high net worth individuals of the future…I take your point …..but try going into a BMW dealership and saying I have no money today but I might have some in the future so you should give me a new 5 series to drive around in for 2 years ……see what their reaction is.
Don’t forget banks are a business with sharholders not a charity sponsored by a church or the govt.
I watched the article on today tonight and while i sympathise with people in this situation, i can’t see how the banks are totally to blame.Fair enough the bank readily loaned them the funds, but who signed the papers????.I believe they overcommitted themselves, i also noticed the 2 nice cars they were driving, are they also financed?.Critisize me for my comments if you wish, but these are my views on the situation.
FostonLife is a series of new beginnings
I must agree.
A friends wife called me for advise because hubby had stopped making repayments.When approached by the bank, he requested an additional advance equivalent to the interest to be paid for one year, and convert the loan to interst only, this after several months of zero payments….in order to have another year free of repayments…. I say would you do it?
May God prosper you always.[biggrin]
MarcHey Foston, I also noticed those flashy cars, did you also see the huge DVD collection aswell?
Ignorance and stupidity is no excuse for financial hardship anymore, it’s the 21st century.
Funny how banks will always be made out to be the bad guys…..
Is it just me or is there too many people out there nowadays unwilling to accept responsibilty for their own actions ???
Yeah – I saw the new holden ute as well (and the other car), and they still lived in a nice house (which the bank did not take away from them).
This was my favourite line:
“It’s like oh yeah just get a home equity loan, just borrow against the house, oh wow we can get $50,000 let’s go buy a new car, get a new TV,” Lee said.
>Wow, and of cours the bank gave you the money for free! WoW!“Our main goal was to have one or two properties for each of the kids and then one or two for us to try and get ourselves financially secured so when we did hit retirement we’re not living on the property line.”
Without the savings to fund another property, the temptation of a home equity loan was too hard to resist and Daniel and Lee say too easy to obtain.
“They’ve got to take a lot of responsibility out of the equation, obviously it was our decision to go ahead but there was no interview required,” Daniel said.”
>Grow up! O’h the bank didn’t make it really, really hard for them to borrow. Hell I would of made them walk on hot coals to see how commited they really were!!! (I’m thinking of buying a bank and renaming it to dogberts bank, and have like wild monkeys at the branches to try and steal my customers money (except people now can’t complain about the fees!!!).So the bank didn’t get them to go for a loan interview! Wow I’ve never had a loan interview either! And yet all my properties actually make money. There right it’s all the banks fault.
Rgds.
Lucifer_au
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