Tuesday, November 18, 2008

UK takes Drastic Measures to Ward off Massive Foreclosures

In the other side of the pond measures to stem the number of repossessions as Mr Brown and Alistair Darling desperately try to soften the impact of the recession on families and businesses makes me wonder how bad will things have to get for the U.S to pass similar measures?

UK's Chancellor will announce on Monday that struggling homeowners will be given three months’ grace before lenders start repossession proceedings to give them time to renegotiate loans and seek financial help.

Schemes brought in three months ago allowing owners to sell parts of their homes to councils and to help the newly unemployed with their mortgage interest payments are to be widened and improved to make them available to thousands more families, The Times has learnt.

Banks are being told to let people in difficulties stay on in their homes, and the nationalised Northern Rock, which is said to have followed aggressive repossessing practices, has been told to change its ways. Courts are being told to consider alternatives before issuing repossession orders.


1 comment:

Anonymous said...

As Jeremy Clarkson will tell you, if your car has started to skid out of control, the most dangerous thing to do is to pull the steering wheel violently in the opposite direction. That, however, is what Gordon Brown is doing with the British economy and the consequences could be just as catastrophic.