Mar
14
Your opinion: Councils & Housing associations to buy Repossesed property?
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I read today that it has been suggested that local authorities and local housing associations should get involved and help families that are risk of losing their homes due to mortgage arrears.
This has got me thinking. Not only is this great news, but shouldt Local authorities and local housing associations get first refusal on repossessed homes or have first refusal on a house that has been repossessed and the tenants have moved into one of the authorities rented homes.
I personally belive this is such a good idea in solving the affordable housing issues and curbing the greed of many landlords who profit form this awfull experience these people endure!
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4 Comments
March 16th, 2010 at 8:43 pm
HUD has a program where they will practically give property to gov agencies for redevelopment, etc.
No gov agencies should not get the right of first refusal. Otherwise they could dictate what price a lender could receive on the sale of foreclosed property. We live in a market based economy and those properties should be made available to the widest pool of buyers to ensure that the lender receives fair value.
When we start expecting the government to solve all of our problems, we will be lost .
March 18th, 2010 at 6:04 am
So, you buy a house and mortgage yourself up to the eyeballs then when it all hits the fan, you expect the local authorities to bail them out …using my money.
No, not a good idea!
This whole “credit crunch” business has been caused by, amongst other things, irresponsible lending AND borrowing. House prices reached stupid levels only because people were able to obtain and then take out outlandish mortgage agreements.
Government should stay well clear of this readjustment of house prices to a more realistic level.
And as for the greed of landlords… for gods sake it’s a business not a charity.
March 20th, 2010 at 10:09 am
I find this a bit surprising and suspect it could be tokenistic because this government has not shown a willingness to invest in council housing so they must be looking at cheaper options. They have already taken away a lot of the powers local authorities had in providing housing by encouraging local councils to transfer their housing stock to housing associations, or to set up independent management associations (ALMOs). Buying repossessed or unsold houses would probably not produce a considerable number of extra homes for rent. Helping homeowners avoid repossessions would be done by them selling a stake in the property to the local authority, so that they would then in effect be in a shared ownership scheme, another policy the government seems keen to promote. The homeowner would then pay rent to the council on the stake it owned, it is not really a freebie bailing out as I see it.
March 20th, 2010 at 8:30 pm
Your idea might be adopted by the authorities.