So these people who have 'accidently' borrowed too much get their mortgage 'wiped'. Does that mean they get to keep whatever they bought with the money?
Sounds like a great lark, like winning lotto for some people. Then the bank passes on the cost of this to borrowers and savers.
Surely they should wipe the mortgages to teach the sleazy banks a lesson but also sell the assets and give the remaining money back to the taxpayers? What's to stop scammers etc getting themselves these low doc ABN for a day loans and have them 'wiped' for free by these courts?
I guess the game is up now. Means less credit in the market and probably an uptick in mortgagee sales. Sure some borrowers were done over by banks and brokers fiddling with the documents, but if as a borrower, if you are too stupid to work out how much money you can safely borrow, you don't deserve a free house. You deserve to be told, hey that money wasn't yours, how about we sell your house and you can leave with no debt.
