Banks more likely to repossess homes than vulture funds
So how are Start, Cerberus, goldman sachs etc. getting paid and funding this if they can’t repossess?
They bought at a huge discount?
Definitely and part of it could be timing i.e. they haven’t had the loans long enough to have exhausted the exhausting legal process before they gain possession!
They cut deals with people to either sell or refinance.
I presume the people who wisely strung the banks along for years by not engaging would now be wise to engage with these new debt owners?
I wonder who the refinance is with. Please God there are no cases where the remortgage could be with an Irish bank…but nothing would surprise at this stage. (Effectively onshoring the bad loans made by British/Belgian banks to put the Irish taxpayer on the hook).
Of course why not offer them new finance given their track record to date and their strong risk profile. Meanwhile credit is scarce for new first time suckers coming along, who will pay the highest mortgage rates in the eurozone, and be thankful for it.
Eh… they will have no choice. Many of these debts are from people who threatened to lawyer up, mainly on spurious grounds, but grounds nevertheless that might cost the kind of money that lawyers can rack up very easily. The new owners just say - any legal issues, you sort that out with the bank after we’ve settled with you. ‘Failure to engage’ was the main criteria deciding which loans were sold on - the threat has been there for a long time and a few people (surprisingly few in my opinion) were smart enough to get out with very good deals - the ones that are left are going to get a pretty nasty shock - the deals struck will not be in any way to their advantage and if the politicians want to get involved they are welcome to do so but any softening of the blow will be with taxpayers money, end of story.
I’m surprised at a letter like this slipping by the Sub-Editor. Fact checking seems to be a thing of the past in the MSM
There is a problem with that letter.
The banks are offloading both the can’t pay won’t pay and the can’t pay can’t pay portions of their books.
If you put can’t pay won’t pay into a rental they will still can’t pay won’t pay …a lot of these are parasites. The state needs to be very firm with the can’t pay won’t pay lot no matter what ‘solution’ is cooked up for them. They should not get priority for housing over ordinary decent local authority tenants who pay their rent.
If some carry on as they have done they should be out on their ears.
Woman agrees to vacate €1m house after over 100 days in jail
EBS secured judgment in 2011 and she’s still there…
Funny how the number given is €9.4m and €9.4m is the precise figure mentioned in this 2012 report on a well known ex Galway Fianna Fáil councillor named Josie Conneely. [ on the pin**HERE* * (https://www.thepropertypin.com/viewtopic.php?f=4&t=21157&start=30).
A new Central Bank publication has been released
Long-Term Mortgage Arrears in Ireland
Irish Times have it here
‘Irish legal system’ to blame for high number of long-term mortgage arrears
irishtimes.com/business/eco … -1.3620550
Why is the Irish Times too coy to name the lady?
Residential Mortgage Arrears, Restructures and Repossessions Q2 2018 figures
centralbank.ie/docs/default … f?sfvrsn=4
Where Green = highest since records began and Blue = Lowest since records began
Banks not restructuring loans realistically, say brokers
I don’t see why arrears capitalisation cannot be classed as sustainable. If someone is able to make current payments today, but missed payments at some point during a period of unemployment or reduced income, then there’s no reason that can’t be a sustainable solution. As long as the capitalisation doesn’t involve the term extending beyond retirement age then there’s no reason the loan can’t be paid in full. Even if it does extend into retirement that could be resolved by downsizing and using the price difference to pay off the outstanding amount of the loan at that point. It sounds like these brokers are just pushing for write-offs to be the default solution even where they are not actually required.
Landmark ruling may affect hundreds of repossession cases
Roll-on the tsunami of reprocessions
Slowest tsunami ever