The headlines say it all. I have seen countless examples of “unfair” mortgagee sales destroying peoples lives not to mention and destroying values.
The banks may have rules, and they may “work” with people in trouble but in the end “Might is Right” as the sorry saga plays out.
This is not just a matter of some sort of dispute between equal parties. The banks have big teeth and bottomless pockets, and the social and economic ramifications of wholesale destruction of peoples lives is elevated to political level.
Yet the politicians remain silent while the horror goes on. Happy they are, to bail out the banks but not, it seems, the bank’s victims.
It is true that many people deserve little or no sympathy and should be sold up for their own good..but how many are good honest people who just need a hand up?
To me the simpler answer would be for the banks to swap their loan for an equity position in a distressed property so the owners and the banks own the property jointly in whatever ratio is appropriate.
In the fullness of time as when the property is sold ( as they all are eventually) both the owner and the bank share in the proceeds. Indeed it could be a bonanza for all concerned. Surely that would be a better solution than a fire-sale where the bank loses, the owner loses and distress and heartbreak are the only outcome.