The state can’t help you get a write-down (if you need a mortgage)

We had an interesting call today because a prospective client wanted to know about Home Choice Loan which is a state sponsored lender.

Her situation was interesting, she is in the process of negotiating a write-down from Tanager via the servicing agent Lapithus and wanted to know if there was any lender out there that might do the deal.

According to the Home Choice Loan website (and a fair critique is that they have done very little in the way of lending to anybody) they are there for first time buyers but ‘some exceptions may apply’. When queried we were told they wouldn’t consider a case for a refinance away from another lender.

What if that involves a good write-down? Currently no lender is willing to finance a deal like this so only people with access to cash can get the deal done, but in a world of low yields if the state was to consider loans like this and do them at their published rate of 3.25% then the nation could make a return on the money invested and the individual could lower their debt.

Sadly, the state can’t help you get a write-down (if you need a mortgage), the only place they are active is in the insolvency courts but that doesn’t resolve the problem for people who may be semi-solvent.

Perhaps it’s time to consider other options for our state sponsored lender?

Comments

  1. Damo

    Karl, I read in you Sun column that you believe renting is dead money. Why do you believe that?

    Sorry for going off topic.

    • Karl Deeter

      It is dead in the same way that mortgage interest is ‘dead’, it’s a consumed cost for an overhead with no investment or savings value, it has utility value and not much else.

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