Wednesday, 3 December 2008

Another day, another desperate throw of the dice (12)

Hot on the heels of the state-controlled Royal Bank of Scotland's decision to allow mortgage borrowers to rack up six months' of mortgage arrears before commencing foreclosure, thus exacerbating the deficit faced by the borrower on the inevitable repossession and a corresponding bad debt in its own books (enhancing the loss to the taxpayer from the part-nationalisation), the state-owned, taxpayer-funded Northern Rock follows suit.

That's the fifth throw of the dice this week alone, BTW.

3 comments:

James Higham said...

Six months' arrears? How it has all changed. I recall the nastiness once with one months' arrears.

TheFatBigot said...

The remedy the banks take is actually possession rather than foreclosure. If I could remember the precise difference I'd explain it, as it is I'm going to have a cup of tea and a slice of cake.

Anonymous said...

Unlucky 13 is that people who get 6 months behind will be able to defer part of their interest payments for up to 2 years.

And who's going to pick up the tab for all that? Oh, yeah... the rest of us.