James Fitzsimons: Lenders have to share burden everyone else is carrying
The mortgage misery is entirely of the banks' own making and they need to be a big part of the solution says James Fitzsimons
If you are in mortgage arrears and your lender hasn't found a solution for you, don't worry, you are in good company. It's probably not your fault either, most lenders are not offering the arrangements that people need. On the one hand they refuse to do anything that involves taking losses. Even if they wanted to be reasonable, they don't have enough money to fix the problem and the Government won't help anymore.
They are in a right mess and they know it. Some customers pulled the right strings and they got the deals that everyone else wants. But they are secret deals and the banks won't talk. A lot of it comes down to paperwork that left the banks exposed when they were drawing up so many bad loans in a hurry. The question is can you find out where they went wrong and can you stick it to them now?
If they didn't botch up the paperwork, they have the right to seize the property and sell it to pay off the loan. If that isn't enough they may be able to look for more. Personal insolvency and bankruptcy may provide a way out for the borrower, but not without hardship. You need to know how to make it work for you. It doesn't matter whether you are insolvent and entitled to protection, or you have some bad loans that you would like to see finished, you can do something about it now.