Should support be provided for those with mortgage arrears?

Should support be provided for those with mortgage arrears?

Should support be provided for those with mortgage arrearsAfter a 2-week visit to Ireland last month, the IMF released a report yesterday commending the measures the Irish Government took to deal with its financial crisis. The report also endorsed plans to help struggling homeowners burdened with mortgage difficulties as a result of the financial crisis by putting in place “narrowly-targeted support measures for vulnerable homeowners”.

Most recent figures show that 1 in every 25 or some 32,000 residential mortgage holders in the state have not paid their mortgage for three months or more. Under the new recommendations (which are to be made next week) lenders will have to collaborate with hard pressed mortgage holders and offer them one or a combination of the following;

  • extend the term or length of the mortgage
  • let them pay interest only on their mortgage
  • allow them to take a payments holiday

However Financial regulator Matthew Elderfield expressed concern last month saying that any such support or alternatively payment options could carry the risk of “moral hazard”, whereby it could incentivise homeowners to breach their financial obligations. “In seeking to assist households in difficulty, we need to recognise that the cost of any support will be borne by those neighbours who avoided excessive borrowing themselves or are gritting their teeth and meeting their obligations” he added.

Have your say:

  • Should support be provided for those with mortgage arrears?
  • If so; where do we draw the line on financial support? What about the burden that would be caused on those who would have to provide the support?
There are 43 comments for this article
  1. jesei at 4:08 pm

    I don’t know, there are so many people out there who had such great forsite, congrats to them. They must have such pride in themselves for always being right. The fact of the matter is that there are a lot of people out there who are in huge difficulty. They are not people who bought 2nd homes, they are people who, heaven forbid, wanted to bring to life the dream of owning their own home and trying to make a better life for their kids. Yes the prices were massively inflated, had we all been so lucky to inherit our houses or buy before the boom there wouldn’t be a problem would there. We built our own house, We didn’t go mad but the cost of our site has sent the cost of the build mad. You didn’t have to buy that site you my say, we tried to buy several sites before we settled on the one we built on, they were all mad money! Why didn’t you rent you ask… Yes we really felt that moving our children from their schools and friends to an area they didn’t know anyone in was a great idea. What I’m trying to explain is that we didn’t have much of a choice in having to find a new house and while we took our mortgage out in good faith, loss of job puts us in a serious situation. Are we responsible, yes to a certain extent we are, yes we are guilty, we borrowed! Did we expect to loose our jobs , no. Are we the cause of the mess of this country at present? No. Did we go mad during the boom? No. We are just normal tax paying joe soaps who never defaulted on a loan before and are caught up in a nightmare from hell. Sell it, I hear you saying, Who is going to buy it? Oh yes one of those clever people with all their foresite, the ones who knew it all, the ones who are out to get a bargain on the back of someone else misery. I hope you will be very happy in some poor family’s home, you never know it could be mine! We should be very careful about painting everyone with the same brush. We are not all the same and there are many honest families who are going to be out on the street if their banks are not willing to work with them. You’ll find that those honest people are not looking for bail outs or write offs just the assurance that their family home will not be repossessed.

  2. Lynn Knipsky Candrea at 8:27 pm

    Not in a million years should home owners be bailed out. If they can’t pay the mortgage, they should sell it. What a ridiculous thing to even think of. Maybe the government should set up a Special NAMA for home-owners? Get real!!!

  3. Cailin deas at 9:29 pm

    It is beyond my comprehension that home owners should be bailed out… to what ends?? To cripple Ireland further into more debt?
    I don’t own a home, much as I’d like to.. what’s in it for me? More tax???
    This money is going to have to come from somewhere!!!
    Come on people, get real!
    Think I’ll just move to another country as Ireland is fast becoming a joke!

  4. Jo at 7:05 pm

    I don’t think that the people who too out more than they could afford should be helped out.
    We all went into banks in the last 10 years and the banks offerered every single one of us more money than we asked for. Some of us had sense and refused to take out more than we knew we could afford foreseeing the future knowing that times may not always be as good as this, such as me, and others decided they were going to buy themselves a big house and look down their noses at the people with the smaller houses. SO NOW ITS OUR TURN. For the people who had the sense when the banks were offering you that extra 10k and you said no,you borrowered what you could afford and bought a moderate house, THOSE WITH THE BIG HOUSES THAT CANT AFFORD THEIR MORTGAGES CAN NO LONGER LOOK AT US AS THE ONES THAT DIDN;T HAVE THE MONEY TO BUILD A HOUSE AS BIG AS THEIRS BUT THE ONES WITH THE BRAINS…THEREFORE THE BANKS UNDER NO CIRCUMSTANCES SHOULD HELP OUT THESE PEOPLE…(onless they are giving some money to those of us that weren’t greedy of course)

  5. Mary at 6:38 pm

    I do feel sorry for the people who are in mortgage trouble but …

    We built our house in 2003. We built a moderate 3 bed bungalow, while everyone else was out there building bigger and bigger houses. At that time we were both working and out of choice, one of us works full-time now out of choice as i am a full-time mother. Our mortgage is payable at the moment but we still worry that should my husband lose his job …where would that leave us..as no job is safe.
    When we sit into the car and drive the 5 miles to town i still wonder how all these people manage to pay their mortgages when the house is so big because i know if we had built a bigger house back in 2005 we would definetley be in trouble now.

    And i hate to say it but i wonder how many couples built houses larger than they could afford and find now they cant have kids ( or any more kids) because they both have to work to pay the mortgage.

    I think if the bank start helping out people in trouble, it would be great for the people in trouble at the moment and the people who say they should not help must have there mortgages paid off because familys who are not in trouble today may be in trouble tomorrow…………..you never know

  6. JackM at 10:33 pm

    So what happens in 10 years time if I buy a house and then lose my job or take a pay cut? Will all of you bail me out then? No job is 100% secure. It is possible that in the future your salary may go down and interest rates may go up. No purchase or investment is 100% risk free. Did no one take these factors into account when taking out a massive mortgage for property that was clearly overvalued? You made the choice to take on the loan and by doing so made the obligation to repay it. Thats life.

  7. Nomimi at 5:55 am

    I am sorry for those descent family who are struggling to put up with their residential homes out there becoz they lost their jobs.

    it a total bull to bail those who were greedy and less smart during the boom in ireland. Why, these so called second home owners were so bad with their tenants who were responsible families, people who never wanted to take debts that was more than waht they ould afford in long run. I am telling you that 5 years ago i arrived in dublin from france, my family suffered in that country even if we had a good income the people called landlord were so bad with tenants, yes they want us taxpayers to pay for their stupidity, no way, more than landlord told us they would give us a house to rent because they never wanted children in their home, over priced home. what a pity…. my son was only 18 months at the time. Off course it was shock for us because in france families come first especially with kids, it a moral behavior, you just cant return tenants just because they have kids, now when you cant pay your morgage you beg for those hard working parents to pay for your silliness. you should loose as concequences of your greedyness. i can go on and on about Irish landlord, god knows how disrespetfull they are with tenants. Yes we paid enormous amount of money in renting and fought all they way against our letting agency and landlords, now it is time for my family to buy their house for nothing… and for nothing. and they will loose. i dont care…

    they must go to their banks to seek help and leave tax payers alone…

    No BODY FORCED YOU TO TAKE SO MUCH DEBTS NOW FEEL IT

  8. Shane at 4:29 pm

    Some introduction on postponing the payments for a few months would be nice for those who are struggling with the current economic climate. With people struggling to make ends meat any help would be appreciated.

  9. Catherine Elizabeth Clarke at 10:17 am

    Yes if banks can be supported so should householders

  10. John at 11:00 pm

    An investitor who got a house and rented it for €1500/month (and the price of the properties were going up) had to pay only €730/month interest having a profit of €770/month for himself. Check what said Michael Dowling of the Independent Mortgage Advisers’ Federation..

    http://www.tribune.ie/business/article/2010/jun/27/ptsb-to-hit-tracker-mortgage-borrowers/
    “Dowling calculates that an investor who borrowed €500,000 and is currently paying €730 in interest per month…”

  11. EILEEN OZDAG at 1:11 pm

    ITS DISGRACEFUL TO THINK THE GOVERNMENT WILL NOT HELP MORGAGE PAYERS BEHIND WITH THEIR MORGAGES THIS COUNTRY HAS GONE TO THE DOGS

    • LK at 2:11 pm

      C’mon Eileen !! What has the government got to do with bailing out home owners. After all, the gov gets its funding from us – the taxpayer. So the prudent savers are expected to pay for the big spenders or those who took on more debt that they could afford. This will keep house prices artificially high and prevent others having access to buy a house. By all means give Tony from Balbriggan a payment holiday but the concept of ‘knocking off’ €100K as if no-one pays for it is just naive. So naive in fact, that it helps explain how some people got themselves into this mess in the first place.

  12. john at 8:48 am

    READ THIS MR ELDERFIELD…ok people its simple math,house price 500,000 mortage per month 2500 approx,with sub prime criminals 3800 approx,if you have bought in the last 3 yrs and cant repay the loan,simple soultion is{1} this take out all your furniture,any fitted kitchens,fireplaces,showers,solid floors ect{2}go to the doctor and get a letter for depression or stress{3}rent the nice show house beside you,or just down the road for half or less the price per mt,{4} plead poverty,and show your doctors note{you cant be jailed for stress or poverty}{5}see what you are intitled to and the welfare may have to pay for your new show house as well as 1 esb bill and 1 gas bill per yr with 200 clothing cheque and doc bills ect{6}watch as all the begruders and old fogeys who told us rent was dead money in the first place winge when property prices fall even lower as this trend catchs on and people realize they dont have told there heads in shame because brian clown and the bertie boys want to go raceing on our money,oh and wait for the mortgage company to call after they get the message that your not affarid anymore and offer you a deal.{7}watch the interest rates soar and the begrudgers pay more because we finally woke up and saw the light and gave back the 30 and 40 yr slave sentance,s. mattew your a nice guy but you know im right,people dt be affarid,your family would rather be happy in the nice house down the road for half the price than listen to the constant argueing of two unhappy adults under a heart attack sentance.whatever god or higher power you beleave in it wants you to live in peace.

    • ANN at 6:13 pm

      john, after reading many comments,watching this nightmare unfold,listening to lies,watching the poor and weak suffer while the corrupt and powerful get richer with no consequences i think your seven step plan is brillant and probably a life saver for many who have had all hope sucked out of them. Your plan could save lives (its impossable to see any solution when in despair) if those in need get to read it. Well done.

  13. Jack at 5:23 pm

    I added a comment yesterday which has not appeared above. Why was it not allowed? There was no bad language, etc. I guess you censored the comment because it did not fit with the agenda of your website. The agenda of your website is to not allow free speach but instead to try and pump up property prices whatever way you can so yet another generation of Irish citizens end up in negative equity.

  14. Tony – Balbriggan at 10:25 pm

    Okay lets get real here! I am a home-owner, currently lost my job and prospects of new one are grim! I don’t want support of my fellow man…….however I would like the support of my bank in offering me options of Interest only or at least option of a moratorium / mortgage holiday for 3 months till get back on my feet.
    This certainly is not charity? However would simply enable the average family a chance to make ends meet/climb out of the hole!
    Surely this is better than foreclosure and banks having to bear managing reclaimed homes at a loss / negative equity etc. This sort of thing would kick-start the economy help people find work, pay their bills and would benefit the banks/govenment/county/NAMA…..the list goes on!!!!!!
    The banks ultimately made this mess! About time they gave something back as WE ALL HAVE BAILED THEM OUT in more ways than one!

  15. Pat Spillane at 9:35 pm

    Yes.
    If we are bailing out greedy Developers and Bankers – the least we can do is help those who lost their jobs or those who had swinging salary cuts.
    Those who took mortages out, in good faith, based on an agreed, negotiated, salary should not be thrown out on to the street.
    Where would they go? and what would be the cost to society?
    I would not bail out those who negotiated multiple mortgages – on multiple properties.

  16. zz at 7:42 pm

    I can see both sides; and I feel for both.

    There are those who were sold on the celtic tiger by the Bankers, who thought that things will always get better and better. The problem is any person buying a home who can just barely afford it must have a bit of common sense to know if they can’t afford it, then don’t buy it. The problem is that the bankers were good SALESMEN and WOMEN who sold these people mortgages knowing full well they could lose the house. So I feel for those who don’t have any common sense, bought a house, lost their jobs and now about to lose their home (not those who have two or more homes; sell one if you are in that situation at a loss and put the net revenue against your existing mortage to drop your minimum payments.)

    Now on the other hand, there are the people who had common sense to realize they were being sold something they could not afford, and if sick or they lost their job, would lose their home. As a result they did not buy…..smart people!! So why the H*ll should they pay for those ejits?? I certainly don’t want to help them out with their fancy car which was part of that 125% mortage they got while I caught the DART.

    So I feel for those in serious debt as an earlier person who is about to commit sui***e, and in those cases maybe the banks (primarily) should bail them out. I would vote a YES on the banks who got them in this mess extending their term lengths to a point where they can afford it, make it 50 years with a “Will in Trust” clause that makes sure the house goes to their kids, and is not sold, to continue the payments.

    I feel this would help those in need, and it is time the banks and politicans pulled their fingers out and did something positive for this economy!

  17. terence at 5:57 pm

    I bought my home but within my limited means to repay my loan. Those who bought Large four and five bedroomed homes for their small families,and for obscene prices should not expect guys like me to “foot their outlandish spending” on these homes. Snobbery should not be condoned. Any assistance should be on foot of extremely strong evidence that those in arrears are not there because of selfishness and greed.

  18. John the stupid at 5:30 pm

    Yes, dear Dublin Resident, yes, there my be someone here to tell you I have lived the last 10 years from rent to rent with 2 children(not like you) paying rent from my wages over € 100,000(not from renting out something I had no money to buy). You had NO money to buy those properties, you “managed” to get mortgage thinking somebody will pay for.You were NOT able to pay, and you are NOT able to pay for. I think you shouldn’t have taken the risk. That make me a tenant. If that would have last 20 years more, who would be more happy than you to have 3-4 or more properties you din NOTHING for, and somebody else would have paid for!!! And I would have been still a tenant…Now go to the bank and give them the keys, as you never had enough money to buy them, and you did’n care who will pay for it(rent), as long as you are the owner…

    • Nomimi at 6:08 am

      YES, i agree with you 1000%. my family was in the same boat as you. we had more than 80k income and could only rent. we faced these landlord all the way, raising rent as they want without considering anyone. We rented 3 bed in dublin 1400, we couldnt do less in one point because we neened safe place for our baby, but the land lord treated us like nothing. where are they today? we decided to put up with any fight because we would never like to buy a house in a crap area that will collapse the value in times like this. the greedees ran to the bank to borrow half million euroes, that they cant pay today. How can we explain a technitan taking 450 000 to buy a town house in north dublin, it doesnt make sense, today tax pAYERS MUST PAY FOR THEM. NO WAY…

  19. Jack at 5:18 pm

    Why should I pay to bail out some idiot who bought some massively overpriced property? Is the concept of personal responsibility completly lost these days?
    During the bubble I made a personal choice not to buy a poorly constructed overpriced property despite being told to by every Tom, Dick and Harry. I did my own sums and arrived at the conclusion that property was massively overvalued. Anyone who thought that a cheaply constucted 1 bedroom apartment built on a floodplain in the middle of nowhere was worth half a million euro was an idiot. Simple as that.
    Ireland – the country were intelligent financially sensible and prudent people bail out the idiots. Some country we are leaving behind for our children.

  20. John the stupid at 5:06 pm

    I still can’t believe, people who bought 2-3 or more properties, inflating the price, making impossible for me to buy a house, and “forcing” me to pay rent over € 100,000 in the last 12 years, people that didn’t care about my children at that time, come now and ask me to help them out… I hope with this 20,000 I saved in the last 10 year I will buy one of their properties when it will be repossessed, for half price or less.

  21. Alastair White at 4:12 pm

    Support should only be considered for those in Mortgage arrears if it is due to unemployment or those who have had salary bcuts of more than 15 % .Those who have life style debts should not be helped as this was their choice while others were more prudent with expenditure,why should prudent spenders pay for the indulgent.

  22. Alan at 3:25 pm

    Reply to Rory

    It was not the case that people had to declare bankruptcy back in the 90’s if they handed the property back to the bank, though this may have been the case for people with investment property ? I know of people from the uk, that handed back their home in the early 90’s and had no problem getting a new mortgage in the late 90’s when things started to pick up.

    I have never heard of ‘single home’ owners being forced to declare bankruptcy after being unable to meet their mortgage payments ? But that said did not experience the situation first hand, just know people that did. Mybe it was down to their bank.

    Dont think a lender can go after someone that has declaired bankruptcy for money owed then, 10 years later ?. But then I am no expert on the matter, just making a comment based on what I know of the similar story in th UK 20 years back when interest rates went through the roof following the property boom + bust.

    I think it is maybe usefull for people to be reminded that this has all happened before, as people that got burnt that time round learnt from it, and moved on. In general, the people that got burnt that time, were first time/younger buyers & investors, many of whome got back on the property lader later.

    Alan

  23. wickedfairy at 2:22 pm

    no matter what you wish, the banks will not do this, the Government will not do this. If you really want to change things, they march every Tuesday outside the Dail to get the present incumbents out. Our leader not even an elected leader. Things are going to get worse. Report out yesterday from bunch of accountants who shall remain nameless telling us we gotta go out and spend, my question is SPEND WHAT! Parallel universe stuff going on at banks and in Dail, look at Ivor Callely, he evidently thought it was alright to claim allowances from his holiday home, thats the kind of attitude you are dealing with, and Mary Harney privatising the health service and running down public hospitals, dont even start me on that ……

  24. Alan at 1:57 pm

    Hi

    Just a bit of history, in the UK back in the early 90’s many people got so far behind with mortgage payments that they ended up just handing the keys back to the bank where the property was maybe worth 20/30% less than the mortgage by that stage.

    It is very important that where possible people put their mort. payments in front of everything else, such as a car, clothes, drinking, fun ect.

    We need a helpline set-up, with real and fast solutions for people who are in big trouble today. Many of which are the main earners for their family, if one more person takes their life due to money problems, it is the fault of this countries c..p government.

    There must be 100’s of financial advisers out of work now that the property market is dead, it cant be that hard to give them a job at a local level sorting out the mess many people now find themself in.

    There are now maybe 1,000’s of people on the brink of cracking under the preasure of getting through this mess with little help available to them today.

    It’s hard to stay positive, when the postman is delivering threatening letters from banks, credit card co’s & gas and electric firms that made billions out of us over years.

    The government need to sort this out today, but they will probably just fec off on holiday again as they have done the last couple of years, it’s hard to know how the people in charge can sleep at night.

    They they conned people into voting for them 3rd time round with lies and empty prommises and wasted much of the money we paid them in all forms of tax.

    Alan

    Dublin

    • Rory at 2:35 pm

      In the uk the people who “handed the keys to the banks” in the 90s & 80s also.

      These people HAD TO declare bankruptcy. They still owed money to bank.

      10 years later the banks come back and want there money when the bankruptcy declaration is no longer void.

      Some people have lost a second home because of this!

  25. John the stupid at 1:39 pm

    Yes, we (the people without mortgage) should pay for your houses. I was’n able to buy a house in the last 10 years as I needed 10% and each year I managed to save 2-3,000 the price went up 25-30,000 (because of so many who knew somebody in the bank or some mortgage adviser that “helped” them with the “papers”). Yes I can prove that I have paid over € 100,000 rent in the last 12 years because I couldn’t buy a house, even when I was told “we can help with papers” because I said is fake, illegal,and I might be not able to pay the mortgage. Now, those who increased the price of the houses because the “way” they managed to get the mortgage want me to pay for their second house… Yes, put me to pay, I don’t have children like you(I only have two) I dindn’t pay rent 1450/month (only few months)I shouldn’t be sorry for my children (only for yours) Yes Yes Yes I worked for my landlord 10 years, now I want to work to pay for your houses(two or three or how many you managed to “buy”)How about going to those who helped you to buy them those who “advise” you to buy and ask them to pay for your houses as they got rich….

  26. Colm at 1:30 pm

    I wouldn like to be in your shoes but do you really want us to believe if you had made a fortune you would turn up at revenue and say “i didnt expect to make so much money here take extra tax from me”. Not a chance. In the sympathy stakes you rate somewhere above Johnny Ronan but way below my unemployed neighbour with just one house. Minimise your debts by selling your investment portfolio at a loss. Then you will have reduced your monthly payments substantially.

  27. Ruth Downs at 1:01 pm

    When wehad a mortgage that was [paid first every time and everthing else was next and food was last i hsd to feed a fasmily of four that why my era we were good cooks we had to be. Paying the mortgage was paramount and I am glad toi say my daughter is the same

  28. teresa at 12:47 pm

    Why not go after developers still living in their big house and Banks CEO who cause the problem and left with big retirements pensions and then go after the Goverments for how bably they are still spending our money. we have taking the hit for all of these its about time there was a turn around

    • Celine at 8:11 pm

      One can point the finger at the developers, the auctioneers and the bankers all they want but when it boils down to it you are responsible for your own decisions.

      If Joe Public made the decision to buy in to the ridiculously hyper-inflated, inferior quality boxes called ‘houses’ then he only has himself to blame. The buying ‘frenzie’ of people queueing up to put large deposits on property that had not even been built made all parties involved realise ‘there’s obviously a demand’ and ‘the sky is the limit as regards what people will pay’!

      Did we lose out minds and rationale and ability to critically analyse what is a reasonabe price for a roof over our head?

      We may not love the French in the football world but we could certainly take a leaf out of their book by not accepting what the powers that be enforce on us. If people refused to buy property at these astronomical prices then you would quickly see the prices drop. We, as a nation were taken for fools and we proved them right. Branding ourselves ‘suckers’. You don’t buy everything you see in the shop, so equally we should learn to be discerning when it comes to making the biggest purchase of our life.

      I agree with David and Ann. Those who were prudent enough to not buy until prices came back to reasonable rates and who didn’t try to borrow at the maximum of their potential are now either getting into the market or sitting patiently to observe price drops. But why should we bail out those who were irresponsible!

      As for property investors, i observed people tripping over themselves to put booking deposits on apartments and duplexes and in one case a man announced that he had just bought 3 apartments: one for his wife, one for himself and one for his daughter who was travelling around Australia but would have a pad when she returned. All my partner and I were looking for was 1 roof over our head to call home and all this greed around us was sending prices through the roof. This pure frenzie made us realise we didn’t want to be part of it so we opted to not even view the place.

      Even though we couldn’t afford it, it didn’t feel right to get into the market then. And there lies the crux of the problem, when did people start thinking that falsifying their salaries meant they could afford the asking price? Regardless of what the banks were saying, did our brains just go to mush in the quest to join the sheep and get on the property ladder at any cost?

      Like David we are waiting in the long grass too and gladly so.

  29. David at 12:31 pm

    Absolutely not, under no conditions can this socialist debt mountain be allowed to grow any higher. In a capitalist country (Which I was lead to believe we are), Let mistakes and bad business decisions be punished by the market, allow prudent investors and individuals reap the benefits of a distressed market, the sooner this happens the sooner our housing market and economy will recover. We cannot bail both sides of this mess, that way we end up paying twice for the mistakes of generation who feel that somehow they have a divine right to a home in the burbs, two cars, 2.2 kids, and two holidays a year. Wake up Ireland, you don’t have a right to anything. Let the market prevail as I will be waiting in the long grass with my hard earned savings.

    • Ann at 1:17 pm

      Right behind you David!
      I was one who bought within my means not my salary at the time multiplied by an unreasonable figure; nor did I buy a property at an alarming price. I also took a cut in pay (like most people) yet I can manage my mortgage as I didn’t borrow a silly figure in the first place!
      If anyone is to get any breaks regarding their mortgage than it’s only fair that we ALL get them!

      • Rory at 2:26 pm

        Yes Ann ,More Community solutions less failure bailouts.

        If you invested €20,000 in a business, you would want to see a return. You would watch your invest week by week or even day by day, depending…

        So Investing 200,000+ in property, you should be an expert in the property market.

        Somebody has to pay, if you made excess money in property..somebody has to carry the can for the excess.

        Too much imbalance and greed..It is important to balance any support with the rest of the community..why should others pay for the greedy reckless behavour that goes right back to the bank source?

        If they want support let them do community work. Help the next generation..time is still moving on (The negative equiteers got a tough lesson in maths and markets)..we need to clean up the mess properly.

  30. valentine at 12:27 pm

    b4 the houses were bought, banks evaluated them b4 giving out loan. currently, why cant d bank re-evaluate and accept they were part of the bubble. govt. bailed out d banks, why cant they knock out 100000 from all those who bought high. if mortgage holders fail to pay, will the bank sell enough and recover,whats going on now is d evil side of capitalism. d govt are cutting salaries, insurance increasing,road tax d same, medical increasing, mortgage still d same, where is d money. very simple, defaulters will increase. ASSIST NOW

    • Dublin Resident at 12:47 pm

      My point is if NAMA is needed for banks to survive so that our Country doesnt have a complete meltdown, what about Ordinary citizens.. greedy or not ( if greedy.. they were not alone.. so were the bankers!!) – we can argue about who was greedy at a later stage.. firstly, the way Govt. took decision to save banks.. why cant they take decision to save people.. so that they dont have a complete meltdown.. and break up families.. suicides and what not…

      A lot of people comment on how greedy people became during boom years. I am one of them. Not greedy.. but an investor. I invested because BANKS told me to put my money somewhere safe for my children. I was advised BY BANKS that its a “sure thing” – I took their PROFESSIONAL advice and look where I am now????

      No money to pay for my own residential mortgage. Because I dont get enough rent to pay for investment property. I have been on waiting list to speak to someone from MABS for 3 months.. and things are getting worse for me.

      So, my point is.. I will either have a breakdown… physically.. go insane with all the bills that come through my door… have a broken marriage.. with all the arguments to do with money.. or I might take a cowards way out.. and finish myself.. and leave my 2 beautiful babies.. to look after themselve?? Anyione… out there.. dare to judge me?

      • prudent at 2:31 pm

        dublin resident(losevestor)

        how dare greedy fools like yourself expect me to pay for your gambling habit .
        you took a punt and lost -tough.
        nobody forced you into buying anything your greed got the better of your judgement, you expected young people to slave and rent your houses now you want them to bail you out again. life sucks when you lose eh?

      • Christopher Brennan at 8:03 pm

        Dublin Resident. While I don’t personally agree that your “investments” should be saved, I do believe that you should never have to fear of being evicted from your actual primary household. I reserve that judgement for the likes of the big bankers who are now moving abroad or signing their assets into their wives name. Yes, we all know who they are…

        Everyone can argue about this until the cows come home. Everyone has their different angles to it and the trenches have already been dug. The answer is simple, no person should be evicted from their own home. Simple. To evict them means that they’ll be at the door of the social welfare asking for a home which we as taxpayers subsidise. They’ll still owe an outstanding amount on the mortgage because of negative equity which will leave the next generation in a family with debt that will take a long time to be repaid, possibly creating a future unskilled working class to compete for minimum wage jobs.

        We could always get our government to write up some legislation to cover homeowners once they are at least paying the interest on their mortgage until they restart work again. That way the unemployed mortgage holders will be safe. If banks say that it will upset their balance sheet the government can then offer the banks a short term, high interest loan to cover them in the meantime and the public purse will end up in profit for it. Banks have never been shy in showing off their profit margins by paying substantial bonus’s, why can’t the public purse make a few quid out of the misfortune everyone and the banks are going through now?

        Investment property though I don’t agree with saving. People buy a house not to get rich on, but to live in. When you as an investor use your money to become even more wealthy, like the banks, you are playing a game that might not pay off in the long run. There’s not enough money to bail out banks, struggling mortgage holders and speculative investors too. We should look to save those most in need, those about to lose their family home.

    • Ann Jones at 7:55 pm

      Actually I think a levi should be put on the auctioneers as they were the ones who were greedy and fuelling the crisis now experienced by mortgage holders with high costs of housing. Numbers being pulled out of a hat rather than actual cost of building

    • Steve O at 12:47 pm

      There should be no bailouts. The taxpayer is already funding the banks. Why should his bill go up because his neighbour made an unsound financial decision? People default in good times and bad. Let the chips fall where they may. People are strenuously against a Big Brother state when it comes to tagging or finger printing even for crime prevention yet they are happy for the all powerful state/banks to bail them out when they do something stupid. Would the same people be passing on the cash they made on the tax free capital gains on their principal private residence in different circumstances? I doubt it. They borrowed the money, they bought the house, they made the decisions. They must then live by the consequences.

  31. Nicole Kearney at 12:15 pm

    With all the people in financial difficulty out there at the moment, the least the mortgage lenders can do, the better.

    We have been fine up until now when a large salary reduction for me means we are struggling.

    A break for a few months from mortgage payments would be just the ticket. We have never been late paying before (on any loan for anything) but 3 months break would really help to get us back on track.

    Would need the legislation to come into effect right now though!!

Leave a Reply