So, the Irish buy up properties at insanely high prices. A significant number of them were always doomed from the start - whether by their type of job, and/or their level of income.
So...here is yet another example of normal people trying to stop the bank foreclosing. Its worth watching, a great example of people who can't pay, wanting to play the 'you can't violate my rights, even though I failed to fulfil my agreed housing contract' card.
I can't say I blame them for trying to stop the banks recovery agent. He sure dug himself a few holes, and certainly seemed muddled on a few aspects.
THEY willingly overpaid for an asset, which they probably assumed would never fall in price (after all, that's what the politicos/mainstream told them).
THEY signed a contract.
They FAILED to meet the repayments.
..and now they want to keep living there anyway...probably for free...whilst regularly shopping for more AAPL products at the local Mall.
Sure, they can whine about the bank bailouts all they like, the mortgage fraud/corruption, and their 'constitutional rights', but when it comes down to it, the average lunatic home-buyer in the 2004/07 era - who grossly overpaid for a home they could barely afford in the first place...no, they don't belong there.
I'm not saying they should get forcibly kicked out, - with the support of the local legal enforcement crew, but they sure didn't meet the terms of their contract.
The mainstream...are largely crazy.
Crazy mainstream populace.....and ironically...so many in society still consider a home as an 'investment'. Its NOT an investment, its a place to live. Until that attitude changes (small hope of that), we'll just get another housing bubble - even though right now, that seems so far away.
I myself didn't realise that bricks, wood, copper piping, and some roof tiles would fail to produce a net annual production of 'something'. /s
No...a house is a drain on finances...it was certainly never a 'investment', whether via revenue generating or capital gain.
For that particular Irish home, despite the protests, there will probably be new tenants...later this summer. Maybe the new prospective buyers will decide that 10x earnings for the house is not good enough? Historically, it was always 2-3x. ... and will be again.
The banks must be allowed to reclaim homes
A point few have highlighted is 'what if the banks are prevented en masse from making foreclosures?
Well, then why would any EVER lend again? The only reason they lend is because they know they can make a claim on the house if the buyer fails to pay at some point.We would be looking at the collapse of the mortgage industry and the wider to-buy housing sector. Even though I sympathise with tenants such as this Irish household, they did make the choice to take out the loan. The asset is clearly not theirs, and yet they have the audacity to attempt to remain there, in some cases...permanently, without ever intending to pay anything more.
If we are ever to see any normalised housing market, the non-payers have to get the boot. Where do they go? That issue is for another time.