New Govt Scheme To Keep Debtors In Their Homes

[pm1977]

irishexaminer.com/ireland/ne … 28704.html

The new mortgage-to-rent scheme will allow home-owners write off their debt — if they give their homes to the bank — but still live under their roofs as social housing tenants.

Private companies or investors would then buy properties off the banks and local authorities would act as management companies and lease the properties to the former owners.

New Beginning, a group supporting mortgage holders, has advised the Government on the expanded scheme. Environment Minister Alan Kelly and his officials have also been involved in it.

One provision being considered would allow original owners buy back their homes down the line.

So the home owners get to effectively skip people who have been on the housing list for years, stay in the homes they can’t afford (with a % of rent paid by govt/taxpayer) and potentially buy them back later if circumstances allow, meanwhile the banks get rid of the bad debt and the govt avoid ugly headlines about turfing families out on the street - everyone wins…except everyone else.

[Elgicko]

Good synopsis pm1977. Does anybody know what the new home value and income limits will be?

If they are high, then this is fu^king a shocking state of affairs. The message to the masses is, dont pay your mortgage for over 2 years (with no recourse from banks), if by some miracle that court proceedings are issued, sure dont worry about it the court registrar will put it back at least another 18 months, so don’t bother engaging with the bank. After about 5 years and after you have saved up a nice nest egg from non-payment of your mortgage, engage with the bank and sure it’s no problem your debt will be written off and you get to stay in your home paying some rent, skipping the social housing list. As if you were going to live in social accommodation! Now off with you and buy a 4x4 and a case of prosecco! (with the cashola under the mattress, or in your AIB account, from not paying your mortgage)

All the while the other plebs who didn’t go bat shit crazy and take out unsustainable mortgages at the height of the boom, can go and fu^koff and buy a crappy house in the commuter belt because there is no availability in the urban areas, because it is full of fuc^ers who won’t pay their mortgage.

Only in Ireland! Great little country!

I am hoping this is an election stunt that will never go ahead!

[mr_anderson]

Repossession is so much simpler.

[dipole]

@mr_anderson

Repossession is so much simpler.

Repossession is so much fairer.

[pm1977]

@Elgicko

All the while the other plebs who didn’t go bat shit crazy and take out unsustainable mortgages at the height of the boom, can go and fu^koff and buy a crappy house in the commuter belt because there is no availability in the urban areas, because it is full of fuc^ers who won’t pay their mortgage.

Plus, as an added bonus, the plebs get to ‘contribute’ (via paying their taxes), to keeping the elite class of non-payer in their nice house in the nice area, with their nice 4x4 parked out front

Regarding house value limits, unknown as yet:

While less than 100 homeowners availed of a previous mortgage-to-rent scheme in 2012, a key change this time would allow applicants have higher home values and incomes.

This would allow a greater number of mortgage holders in difficulty, particularly in Dublin, to sign up for the scheme. Under the old scheme, homes in the greater Dublin area had to be less than €220,000 in value, and those outside of the capital, less than €180,000.

…One senior Government source said: “The key is that people get to remain in their home. The value of homes [allowed] needs to be finalised, as well as who exactly administers it.”

[BuMble]

@pm1977

New Government scheme to keep debtors in their homes

The new mortgage-to-rent scheme will allow home-owners write off their debt — if they give their homes to the bank — but still live under their roofs as social housing tenants.

Private companies or investors would then buy properties off the banks and local authorities would act as management companies and lease the properties to the former owners.

New Beginning, a group supporting mortgage holders, has advised the Government on the expanded scheme. Environment Minister Alan Kelly and his officials have also been involved in it.

One provision being considered would allow original owners buy back their homes down the line.

So the home owners get to effectively skip people who have been on the housing list for years, stay in the homes they can’t afford (with a % of rent paid by govt/taxpayer) and potentially buy them back later if circumstances allow, meanwhile the banks get rid of the bad debt and the govt avoid ugly headlines about turfing families out on the street - everyone wins…except everyone else.

I don’t really have a problem with them getting housed straight away as they’re (kindof) contributing a house to the system, however if under social housing criteria they qualify for a two bed house and they have a for bed, they should get the next available two bed while the four bed goes to the next family eligible for a four bed gets the four bed.

@mr_anderson

Repossession is so much simpler.

And that’s the truth

[pm1977]

@dipole

@mr_anderson

Repossession is so much simpler.

Repossession is so much fairer.

Repossession is so unpalatable to a lillly-livered government.

[slasher]

thejournal.ie/home-repossess … 3-May2015/

Similar coverage in the Journal;

Depending on how the topic is framed the top comments in the Journal vary from “The Gubbinmnet isn’t doing enough” to “why should I pay”. t’s the former right now

[cjs]

They are flying kites to see how the public react to them, the one’s that win votes will be done the one’s that cost votes won’t.

Hardly seems fair that a couple with no kids will get to stay in a house that meets a family’s needs while families are living in hotels!

[BuMble]

The stats in that journal article really piss me off, I posted this in the arrears thread too but here goes again

So repression orders have increased by 500% have they? Stats always need context so I found some…

centralbank.ie/polstats/stat … /Data.aspx

Entering Q1 2015 (Dec 2014) there were 78699 mortgages in arrears >90 days leading to 586 repossession orders in Q1 2015, so some 0.74% of mortgages in arrears greater than 90 days resulted in repossession
Entering Q1 2014 (Dec 2013) there were 96467 mortgages in arrears >90 days leading to 95 repossession orders in Q1 2014, so 0.10% of mortgages in arrears arrears greater than 90 days resulted in repossession

So when you apply some context to the statistics we’ve seen an increase from 0.10% to 0.74% in the rate of repossessions of properties where the mortgages are more than 90 days in arrears, not so sensational now is it?