Mortgage Arrears: Are we heading for repossession “disaster”?

Mortgage Arrears: Are we heading for repossession “disaster”?

Mortgage Arrears: Are we heading for repossession “disaster”? Yesterday a man in Arklow, Co. Wicklow barricaded himself and his sister into their family home using machinery from his plant-hire business in order to stop the house from being repossessed. The man said his actions were an attempt to reopen negotiations with an unspecified lender that had attempted to serve a repossession order.

New figures show that 600 new cases of repossessions have come before the courts in just one month and according to the Financial Regulator as of May just gone by, 32,321 mortgages or 4.1 % of all 791,000 mortgages in the State were in arrears for more than 90 days during the first quarter of the year. Chairman of the Public Accounts Committee (PAC) warned that Ireland is facing repossession “disaster” if steps are not taken to aid homeowners struggling to pay their mortgages.

Fine Gael TD Bernard Allen said “With so many people struggling to keep up with mortgage payments it is vital that action is taken now to force the banks to make repossession the absolute last resort; if this doesn’t happen… we could be facing a repossession disaster in this country which could have major implications for any fragile, economic recovery”.

However Felix O’Regan of the Irish Banking Federation (IBF) who’s group released a report earlier this month on the issue of mortgage arrears said “steps are being taken day by day, week by week to tackle the issue of mortgage arrears”… ”Lenders will not take court action against (/ serve repossessions orders) anyone who has approached them in an effort to tackle their arrears problems”. They say if you are struggling with repayments the best thing you can do is to communicate with your lender who will help you work out a repayment plan.

Along with a new five-step system to be set up allowing homeowners with mortgage arrears to agree new repayment terms with banks and building societies a second report is also to be published in September from the Mortgage Arrears and Personal Debt Expert Group that will deal with the issues of negative equity and debt forgiveness.

There are 4 comments for this article
  1. Mail-man at 3:42 pm

    In reply to house in Arklow, repossession on home. I think it’s a disgrace on the mortgage people to take this case this far. Obviously don’t know the in’s and out’s of the matter, but for a Bank to take this action in these times is cruel and madness..

    good luck to the people who stopped this action and I hope they get their day in court and this savage action by the Banks overturned.

    Times are tough for most people these days, but I think it’s totally unfair to try and evict someone from their home. The very place they worked their hearts out for. Grow up Bankers and give these people their dignity and respect…

  2. mim at 2:47 pm

    supply for the next 47 years in Dunlaoghaire Rathdown there are currently 51 propertys up for sale in this area on Daft..enuf for 47 years last comment correct its a cycle what goes up must come down and wht goes down must go up..u must all realise tht there are a lot of renters out there and i am sure they wont want to be renting into their retirement? do the maths we all need to own our house by retirement its a necessity unless u want to go into public housing and let the government u so despise support you !!!

  3. Mairin de Burca at 11:05 pm

    I don’t know the exact figure of homeless families and people made homeless through failure to be able to pay mortgages but it must run to tens of thousands of families. The taxpayer now owns thousands of empty properties through their bailout of the banks who loaned the money for building these now empty properties. All empty flats and houses should be taken over by the state and the homeless put into them and charged a fair rent.

  4. Christopher Brennan at 6:00 pm

    Funny so that a bank will say “we will want to negotiate with a family for a new repayment plan so as not to serve them with a repossession order” to a family who may have lost one or both earners in a household but would jump onto a very lucrative shop which is supposedly profitable like Arnotts seeing as they owe so much… If the bank knows it’s getting a good deal, irrespective of whether or not there is a family living in the house, they’ll jump at the chance to make a few quid on it! And even if there’s not a lot of money in it for them, they’ll still not be happy unless they have a noose around your neck just waiting for you to kick that chair you’re balancing on yourself to tip you over the edge and give them what they want at the end. Legislation has to be brought in to ensure that once a person is willing to negotiate a new repayment plan, irrespective of it being a bank or broker they have the mortgage with, there should be no allowing a repossession order to be filed in court. Too many people are loosing their family home after losing a job, yet we seem to have more sympathy for a bloody paragliding donkey in Russia than we do for our struggling families back home here. Interrupt the politicians holidays, get Biffo back from the Galway races. Get him to sign a new legislative piece ensuring no-one will lose their home if they’re willing to pay what they can and make it that this becomes the news of the past and not allow another family to recieve the news they’ve been dreading!!!

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