“There’s a real issue of moral hazard . . . Around 70 per cent of restructured mortgage loans aren’t being serviced because people think foreclosures will only be applied to big villa owners,” one banker said.
Dimitris, formerly a high-flying advertising executive, sold his brand new loft conversion at a knockdown price to help pay off debts when his agency folded three years ago.
“I still owe money on the car and motorboat I can’t afford to use. Even a holiday loan I’d forgotten about,” he says. “I’m living with my mother looking for work and waiting for the bank to come up with another restructuring offer.”
That is from Kerin Hope at the FT.