The Irish Banking Federation (IBF) has estimated that there are approximately 14,000 people in Ireland with mortgages in arrears. So it’s not surprising to hear that with the recession in full swing and money fairly sparse that around 225 orders for property repossessions were made by the circuit courts last year. The outstanding credit to private households reached a colossal €171.7 billion … at the end of March which hints that the number of repossessions can only go anywhere but up.
The High Courts are expecting an “avalanche” of possession orders this autumn as the first wave of moratoriums against pursuing mortgage arrears will end! Since February of this year there have been two separate freezes on following up unpaid mortgage payments; one for BOI & AIB which will stay in place until February 2010 and a second freeze of six months for all other lenders – which has now ended.
Undoubtedly many properties will be pursued in the fight for mortgage repayments. However all hope is not lost as Justice Minister Dermot Ahead has proposed to ban lenders for going directly to the High Court to seize properties of homeowners who have fallen behind. The proposal would make it compulsory that repossession orders be lodged first at the Circuit Court. How is this helpful?
Homeowners brought to the High Court are at a major disadvantage, not only is it extremely expensive but more than likely you would be less likely to be represented. Forcing lenders to go to the Circuit Court would mean that homeowners would be in a better position to save their home.
Have your say:
- Is repossession fair in light of the recapitalisation of our banks?