Residential Mortgage Arrears, Restructures and Repossessions


#3781

Another mess…you’d have to question whether the law was written deliberately to allow for this as it seems such an obvious error

Significant ruling helps mortgage holders in debt write-offs
High Court judgment may affect banks’ capability to split mortgages and park debt
irishtimes.com/news/ireland/ … -1.3092540


#3782

I’m lost. Where is the obvious error? That a judge was able to overrule a bank’s wishes and impose an insolvency arrangement? That was always the headline intention and the coverage of the change in the law was completely up front about it.


#3783

This is the bit I was was referring to
independent.ie/business/pers … 41467.html


#3784

Thanks for clarifying. The IT article you originally linked to didn’t make that point clear. Reading the Indo article you’d wonder if the gap might be bridged by defining that the parked amount only becomes payable when the property is sold or bequeathed, and that, in the cases where the proceeds from a sale are lower than the parked amount, the difference should be written off. That would resolve the issue about the parked amount potentially leading to insolvency later in life.


#3785

It would seem fair to me that the borrowers in these cases should reside under the same terms as “ordinary” renters. If the tenancy conditions of “ordinary” renters are deemed to be too punitive then why not raise the bar for all ?


#3786

To some extent I can see how these arrangements should be full and final to allow people to move on.

By the way, the article refers to a three-bed semi-detached house in Drogheda worth €105,000. The cheapest I could find was worth €185,000 :angry:


#3787

The defendant in this case said on Newstalk earlier that a house sold recently in his estate for 95k. So he was keen to point out he was still in negative equity but would work through it


#3788

No house in Drogheda has been sold for 95k according to the PPR or less than €150k


#3789

It’s a pity Newstalk didn’t have Researchers as good as this!


#3790

Yeah it took about a minute to check


#3791

I have never seen one of these cases reported on without leaving me with lingering questions about some aspects of valuation, payment history, personal circumstances, lifestyle habits, etc.


#3792

Some of the estates on the southern outskirts of Drogheda are actually in Co. Meath. Might it be the case that people would refer to those houses as being in Drogheda but the PPR would show them with a different address?


#3793

**Residential Mortgage Arrears, Restructures and Repossessions Q1 2017 figures **

(Note 1: BTL figures are discussed separately here viewtopic.php?f=10&t=50546)
(Note 2: Analysis of Restructured Mortgages can be found here viewtopic.php?f=19&t=63422)

Report Link
centralbank.ie/statistics/d … ge-arrears

Arrears

Repossessions

Restructures

Where Green = highest since records began and Blue = Lowest since records began


#3794

Competition watchdog calls more ‘effective’ home repossessions

irishtimes.com/business/fina … -1.3120898


#3795

In some parallel universe where right wing means right wing…

Interviewer: Leo, what are you going to do about the ongoing repossession problem?
Leo: well, I’m going to make these repos faster and less bureaucratic. We need to undo government interference in this area.


#3796

the courts are far too sympathetic at the moment with people who aren’t paying their mortgages in my opinion. It takes years for cases to get to the stage where an order for possession may be granted, and yet judges/county registrars have no issue with consistently adjourning matters as people are “doing their best”, despite paying next to nothing, while their liabilities grow ever worse


#3797

The Courts/Judges are far to busy trying to write laws/influence legislation when they should be enforcing what laws we already have in place. If the Govt was interfering in the Judicial process as much as they do in the Legislature, there’d be shrieks and cries a plenty out of the Law Library.
They been applying their social leanings/political outlooks in this sphere and others for too long


#3798

Where are the vulture funds?

economic-incentives.blogspot.ie/ … funds.html


#3799

The Competition and Consumer Protection Commission had a report out on options for the mortgage market.

I found this part useful:

*During the pre-consultation phase and in the responses to the public
consultation, stakeholders consistently and compellingly raised the issue of
NPLs, the risk of default and the difficulties lenders have in attempting to
repossess the security on defaulted mortgages as a significant and determining consideration for new entrants. Even where new entrants would be unencumbered by the legacy of a poorly performing back book, when faced with a choice between two markets, funders will choose the one with the less risky outcomes based on previous experience. The risk weighting attached to Ireland is perhaps even greater still given that the Irish market has not dealt effectively with the current NPL crisis, has not put in place a consistent and credible process for dealing with current NPLs and is therefore less likely to be able to respond effectively to any future crisis.

Nearly all of the respondents to this question in the public consultation agreed
that the level of mortgage arrears coupled with long and uncertain repossession policies were acting as a potential barrier to entry. While PTSB commented that loan defaults are inevitable in any lending environment and their effect is to make a market less attractive. Lender 2 went further and noted that “repossession policies and practices are a barrier to entry to the Irish market for the following reasons: access to loan security is uncertain; the timing to security realisation is protracted; associated capital and operating costs are significant. … The time to resolution in Ireland is also typically much more protracted than elsewhere. In Ireland, this ranges from 18 to 72 months. By contrast, the UK range is 9 to 12 months, with Northern Ireland and Denmark at 6 months.”*

Although the eventual conclusions are very mild.

We would therefore consider that the greater use of
suspended possession orders by the court would be worth exploring further as
a measure to bring about a more transparent and predictable process that is
aligned to European norms.
The complexity of the options described above, in conjunction with considering
the long term desired structure of the mortgage market, requires the
establishment of an Interdepartmental working group or Joint Oireachtas
Committee to examine the design and implementation of the processes
described building on the commitment in the Programme for a Partnership
Government


#3800

rte.ie/news/business/2017/0 … it-for-h1/

The bad loan book peaked at €11bn 4 years back.

Various workouts got a lot of them to ‘perform’ again and recatagorised as performing.

Of the €5.8bn of impaired loans around €1.5bn are of the won’t pay and won’t talk type. These are slated to be offloaded to Vultures in some tranches of at least €500m this year.