Monday, 24 September 2007

Men In Black read supermarket tabloids...

...and Roger notices trends in loan tv ads.

Latest innovation is not to offer secured loans, but to offer to take the property off the owner, "clear the debt" and then offer a tenancy agreement to enable them to stay in their own home.

The lender thus gets the hard asset and regular income, not just the interest income from a fiat loan secured against an asset that others may have a claim on. I suspect the deal will be horrible, "legal fees" will be, erm, not cheap and the rental will be pitched at least at market rates or more, for there is value in pandering to laziness.

I suspect we will see more of this kind of "offering". Harbinger of mass repossessions and a downturn in the property market.

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