Interesting that there was no contact from some of the mortgage holders. The Irish version of handing back the keys? No surprise to see Start & GE heading the list.
This has been in the news for some time and dare I say it this was discussed on boards.ie before here.
What is somewhat misleading about the indo article is the way they say Judge Dunne granted 8 orders for possession yesterday as though to suggest that this could be the daily rate from now on (i.e. say 200 court days * 8 = 1600 per year) but these cases are only heard on mondays in the High Court, so it’s more like a weekly figure (40 * 8 = 320) which is still high, but not nearly as high as is being suggested.
In any event, HC repossessions are just the tip of the iceberg, there are also circuit court repoes, forced sales and settlements out of court.
EDIT: You might also want to change the name of the thread, because repoes have been going on for a while so they haven’t started as such. Increase maybe?
Anyone know what happens in the scenario if an Irish bank is taken over and its loans are called in by the new management?
You take a piece of shit right… And you turn on a fan…
Hate to answer a question with a question but, assuming that the bank was taken over (in a weakened financial state due to doubts over its loan book), why would the new management call all the loans and bring on the defaults? Have you a theory in mind?
They would not call in all loans, but they would review the business they don’t want and loss making enterprises/individuals and liquidate the assets. The sooner they write them off the better, the new owners can begin growing their profits again.
I don’t know what is crazier. A subprime lender giving a loan of 404k or someone taking it.
I’d say it would have a big impact on other similar banks operating in the same marketplace. If say BOI did this, it might put a definite figure on the bad debts that say AIB might be expecting. Depending on what provisions were allowed for, shares could go either way. It might help the stock price as some uncertainty would be removed and investors could return.
As for housing, the true market / clearing price for the foreclosed assets, assuming they were foreclosed and not taken over by other banks, would be clear.
Interesting thought, but it would require some ballsy management; and one for the conspiracy theorists…Would the other banks allow it?