2 January 2010
A nurse whose home was to be repossessed this week has won a reprieve, thanks to Financial Mail and her lawyers.
Rate shock: Payments on Bola Eriksola’s terraced house went from £900 to £1,500 a month.
Bola Eriksola was to attend court on Wednesday as her mortgage lender, Rooftop, founded by failed bank Bear Stearns, sought to repossess her £192,000 terraced house.
Rooftop’s rate was high even in July 2008 when the Bank of England base rate was 5%. But by March 2009 the base rate had fallen to 0.5%. Rooftop, however, like other lenders, did not pass on a proportionate cut in rates.
Many such lenders, which are closed to new business and often owned by organisations not connected with the mortgage industry, escape regulation and are secretive about rates and charges.
SANCTIMONIOUS COMMENTS FROM MAIL READERS ATTACK BORROWERS , NOT GREEDY MORTGAGE LENDERS
This reader comment following the article about Bola in the Financial Mail is one of many similar ill thought out attacks on a borrower which seem to implicitly support and approve of the wickedness of Sub-Prime mortgage lenders.
Posted by: Mustafa, Leicester
3 January 2010, 6:32pm
8. This woman made the mistake of increasing her debt and moving to a dodgy sub-prime lender. Now she is not supposed to take responsibility for her mistakes?
This Financial Mail campaign is MISGUIDED and RECKLESS – the economy is wrecked because we need to DISCOURAGE people from taking on unaffordable debts and end the unsustainable asset bubble in housing which has made it so overpriced. Why shouldn’t this woman accept her mistake and go into rented accommodation like many of the rest of us?
Financial Mail should be supporting savers, not bailing out those who have recklessly got themselves into debt.
WHAT ABOUT THE DECEITFUL MORTGAGE LENDERS ?
I am astonished at all these attacks on Bola making out it is entirely her fault for being ‘milked’ by disgustingly devious mortgage lenders who deliberately trap people into a carefully designed structure of what is clearly ‘constructive’ fraud.
There is a legal description for this. It is called ‘conversion’ – whereby ‘artifice’ (that’s deviousness), one person ‘converts’ another person’s property to their own use.
You will see a remarkably similarity between the artifice of sub -prime mortgages and the criminal loan sharks. Loan sharks use escalating physical violence to enforce ever increasing repayments until a borrower is completely ruined and has been stripped of everything they own for the sake of a trivial loan.
Sub-prime mortgage lenders use precisely similar tactics designed to fleece borrowers the moment they have the slightest difficulty with the rising repayments which are specially designed to make it deliberately difficult for borrowers to continue making them.
The only difference between sub -prime lenders and criminal loan sharks using physical violence is mortgage lenders use legally inspired mental violence, together with a huge amount of remorselessly contrived follow up psychological pressure and violence.
Most victims remain damaged and scarred for the rest of their lives.
This is eventually followed by a certain amount of physical violence. That is legal because it occurs when the mortgage lender smugly tell a court that a feckless and irresponsible borrower is simply not repaying the rapidly inflating mortgage. This is now being artificially loaded with increasing penalty fees making it grow into a gargantuan sum of money impossible for the borrower to keep up with.
Like criminal loan sharks, the original sub-prime mortgage loan soon dwarfs into insignificance as all the extra penalty costs are added to the loan in a blizzard of uncontrollable and ever escalating debt quite beyond any borrower’s ability to control.
So the court simply orders that the lender can send in the bailiffs to physically evict the homeowner, using any legally allowed physical violence that may be required to achieve this purpose.
The house becomes possessed by the lender who now has the opportunity to fleece the hapless homeowner even more, invariably doing so to such a degree that often the homeowner loses everything – including all other domestic possessions because there is nowhere else to put them.
“Your whole life is ruined; it just comes to an end” one victim said.
There is really not a lot of difference between the criminal loan sharks using thuggery and physical violence to steal money, and the artfully thought up ‘sub-prime’ mortgage contracts intentionally designed to be increasingly impossible to repay.
It’s just that mortgage lenders have realised they can achieve the same dishonest and immoral results as the loan sharks by using legal and financial gobbledegook to trick thousands of people out of their homes and make billions and billions of pounds of profits for their fat little banker’s bonuses we hear so much about.
Tags: Banks, Credit Crunch, Debt, Economy, Extortion, financial crisis, Financial Service Authority, Fraud, FSA, Gordon Brown, Government, High Street Banks, Loans, money, Mortgages, News, Office of Fair Trading, Politics, Poverty, recession, repossession