Residential Mortgage Arrears, Restructures and Repossessions


#3901

So small business owner equals overleveraged canny?
It wouldn’t have been written while Cliff Taylor was editor.


#3902

Good argy bargy with Burgess and D Hall on the radio this morning

Also at the Oireachtas Finance Committee


#3903

Nothing unusual about this unfortunately…6 years with not a penny paid on a very grand house in a very nice part of town

independent.ie/irish-news/c … 83657.html


#3904

Residential Mortgage Arrears, Restructures and Repossessions Q1 2018 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/docs/default … f?sfvrsn=9

Arrears

Repossessions

Court Proceedings

Restructures

https://i.imgur.com/pBADM8l.png

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


#3905

Permanent TSB sells Project Glas loan portfolio to Start Mortgages for €1.3bn

rte.ie/news/business/2018/0 … -mortgage/


#3906

Were they the ones that were the most aggressively repossessing properties during the recession?
Could we see another round of repossessions now.


#3907

I think the correct collective noun is a tsunami of repossessions :nin


#3908

yes its a large volume spread out over a large area so you would barely notice it until it bites you in the ass - a classic tsunami.


#3909

independent.ie/irish-news/b … 77424.html

Is it too late to get a mortgage and only bother make a payment every other month? It seems I could string out a bank for up to 10 years. Looks like a cheap alternative to renting.

Seriously, I think the most egregious thing about all this is that typical first time buyers wont even get the chance to buy these houses, the houses near jobs will be parceled up and sold to REITs at discounts and rented back to the very taxpayers who paid for the discounts.

In the clowncountry of ireland most of the rest of the year will be media focused on some stupid irrelevant referendums while Eoghan Murphy sleeps easy. :imp:


#3910

Reits buy blocks of apartments not individual units.

The big bad vulture funds will do a deal with the defaulting borrowers leaving them homeless but no residual debt (assuming they facilitate a sale). The only issue are the loans BTL loans which when sold will reduce the stock of rental properties.


#3911

Another round? I must have missed the first one.


#3912

How did you miss the tsunami :angry:


#3913

Ask anyone who had a start mortgage, I seem to recall that they were repossessing all over the place.


#3914

I was asking someone about the scale of this loan book sale and they reckon:

  1. Around 120k homeowners had a default issue at peak, some are fully back on track with no arrears or almost no arrears.
  2. Around 30k are on a sustainable path to paying off the mortgage after a term change…often a term extension, but they are repaying even if more slowly.
  3. Split Mortgages are only paying part of the mortgage.
  4. IO solutions are paying nothing off …BUT some are not in negative equity any more.
  5. Then there are 20-30k who pay nothing off.

The loans to be sold to the vultures will be all of 3 4 and 5 or c.70-80k PPR homes in total. The banks will only keep ones that are in categories 1 and 2. This would be around 10% of all mortgages but these cannot be securitised as they have defaulted at some stage.

Investor mortgages are on top of that.

Loans that were up to 3 months in arrears at some stage, but no more, are disregarded. These are the new performing. :slight_smile:

Some also took payment holidays of 6-12 months to which their contracts entitled them and I never saw figures on that but they are probably quite high. Standard BoI terms post 2000 allowed a 6 month payment holiday any time, say you were travelling or something. Those who availed of this are often the hidden defaulters as the holidays were often applied retroactively especially in 2010-2012.


#3915

Central Bank’s Q3 2018 bulletin has some interested Mortgage Arrears info

centralbank.ie/docs/default … ?sfvrsn=10

pg 59 onwards


#3916

Very good info.

They’re about to discuss the PTSB sell-off on Joe Duffy so expect plenty of deep and even-handed analysis there!
Boyd-Barrett also has a letter in the IT today but it’s early August so hard for the Left/Media to whip a frenzy up on this one


#3917

KBC Bank Ireland to sell €1.9bn loan portfolio as profits fall

irishtimes.com/business/fin … -1.3590647


#3918

Ulster Bank to sell non-performing loans worth €1.4bn to Cerberus

rte.ie/news/business/2018/0 … ank-loans/


#3919

From the RTE article:

That’s almost 7 years arrears. On average!!!

I’d be fairly certain that amidst the outcry that these people may lose their homes, not one talking head will suggest that perhaps thats to be expected if you don’t pay your mortgage for 7 years!

Astonishing.


#3920

David Hall, Constantin & Co. can go cry to the British taxpayer on this one. For the British taxpayer has taken the hit, and the long suffering UK mortgage holder or indeed renter do not get sweetheart deals anything like this, so they may well ask why some Irish fail to pay back their mortgages in the midst of a so called boom.