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.

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.

Self insurance really only works for bigger companies because they might hav eafleet of 1000 cars and that goves them a porfolio of spread risk. For a person with 1or 2 cars 1 or 2 houses etc it doesn’t work as well.

Health insurance: if you look at the claims charts you will see that people in their 20 and 30 pay more than they claim except for when they have babies then as you get to 55 you start to claim far more than you pay….hence the incentive to get you to join young and stay on.

A couple of points to note:

the banks to not set the fixed rates according to what they “think” the rate will be in X years…they go off the money market rate for where they have to lock in funding for fixed rate loans and tehn add their margin. (the rates are published in the AFR everyday)

As for a stock broker telling you that rates will be at 8.25%in 1 year…that is fine and he is welcome to have an opinion but it is a bit like a real estate agent telling you that a ford falcon will have a good resale vaule in 1 year.

Note also that the stcok market guys only know what they are told…interest rate dealers trade interest rates and deal in them every day and they arer saying that rates will be lower than 8.25% next year…in fact the interbank market (where the lenders buy and sell fixed money) has interest rates at about 5.6-5.8% for the next 3 years !!!

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How are you all going??? Is anyone able to offer any form of proof that a bank can call a loan??? Or are you just going to go around in circles and criticise me for having the hide to question a statement??

Where did the idea that most are funded offshore come from??

Quote: “Nat, the bank will not forclose a loan as long as the person/persons keep up their repayments.?

…From memory I think that is what I said upfront.

If somebody defaults then the bank has every right to step in…that is a world away from the original incorrect suggestion that the bank can call up at tany time and force a sale.

BTW I’m over 35, I’m not in a negative equity position, I bought all my houses at the darkest hour and have done well from them.

I’m not a mortgage broker.

Tim …where do i start?

UCCC – uniform consumer credit code…no lender can move in a sell a property whilst the borrower is still fullfilling thier obligations to pay and is not in default or arrears.

For non code loans ie investment loans…what bank in thier right mind is going to wake a sleeping dog i.e. take a performing loan and sell it up in a fire sale because the LVR has changed. They go from having an otherwise strong borrower servicing a loan to trying to force a sale. By the time they spend 3 years in court and 2 weeks on tabloid television the house would probably be worth more anyway.

Some of the absolute BS on this forum is just too funny for words.

Quote: He told us that many loans written today, have a clause that allows the lender to trigger a mortgage sale if the equity/debt ratio shifts too much.

…absolute fiction !!