A new home-ownership support scheme that would help protect Irish families whose homes may be threatened by the downturn was proposed yesterday after the second stage of the NAMA legislation was passed on Wednesday night.
Eamon Gilmore said “The people who are having difficulty today in repaying their mortgages are those who had good jobs a year or … two ago and certainly at the time they took out the mortgage”. He added that “The ESRI has estimated that the banks had 35,000 householders ‘in their sights'”.
The home-owner support scheme would allow NAMA to take an equity share in a home after negotiating a write-down in the outstanding debt with the bank or mortgage provider.
The property owner would pay the lower debt and would also pay a rental fee to NAMA for the equity share. The householder would then have a choice at the end of the process to buy back the NAMA equity share or to share the sale price with NAMA if the property was sold.
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