Thousands of homes targeted for seizure by banks


images

BANKS have initiated legal action to repossess thousands of houses and apartments, it has emerged.

This is despite a loophole in the law blocking repossessions.

A new report estimates that lenders have issued legal proceedings to take properties off up to 44,000 borrowers.

These are made up of residential and buy-to-let properties, according to calculations contained in a new report by Davy Stockbrokers.

An analysis estimates that what it calls non-cooperative borrowers number between 23,700 and 43,700.

FEARS

Letters threatening legal action have been sent to these borrowers.

And there are fears that large numbers of properties, particularly buy-to-lets, will be repossessed.

Legal action to repossess properties has been taken by both AIB and Bank of Ireland in around one in five of arrears cases, according to the report by Davy‘s Conail Mac Coille.

Ulster Bank said that up to a third of its property owners in arrears were making no payments at all. The bank said it would not hesitate to repossess in these cases.

Strong demand for family-type homes and the presence in the market of large numbers of cash buyers mean that a flood of newly repossessed properties can be absorbed.

A number of banks were also likely to keep repossessed properties on their books, take the rental income and slowly release them on the market, Mr Mac Coille wrote. Changes in the law to restore the right of lenders to repossess properties have been passed by the Houses of the Oireachtas and are expected to become law soon.

Davy reckons that arrears will keep rising this year, with large numbers of homeowners struggling to repay largely due to income decreases rather than job losses.

Two-thirds of those in arrears are in a job, according to comments by Central Bank governor Patrick Honohan.

For large numbers of borrowers in trouble the mortgage repayments are so high they represent more than half of their income, Davy reported, citing unpublished Central Bank studies.

A separate MABS (Money Advice and Budgeting Service) report found that distressed borrowers had just €777 a month left, after paying for utilities, food and childcare. But the mortgage was around €500 a month.

SPLIT

Banks will have to write down up to €11.5bn of mortgage debt. Most of this will be in the form of split mortgages where part of the mortgage owed is put to one side, and in most cases will probably have to be written off at the end of the mortgage term.

But one-third of borrowers are in such a bad financial position that a debt writedown will not work. These are mainly buy-to-let investors.

Half of investor mortgages are paying interest only. Despite this, almost 30,000 out of 150,000 buy-to-let mortgages are in arrears.

Irish Independent

via Thousands of homes targeted for seizure by banks – Independent.ie.

Advertisements

About Old Boy

Love the past and the future but live in the present

Posted on July 30, 2013, in Banking, Government, IMF/ECB, Ireland, National Politics and tagged , , , , , , , , , , . Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

three rows back

because you can never watch too many movies

Rogues & Vagabonds

theatre, film & tv past and present 2001-2008 & 2013...

Rooster Illusion

Arbiters of Taste - Movie Reviews and More.

Anybody Got A Match?

A Modern Look at Classic Hollywood

wildfiremovies

An award-winning filmmaker and screenwriter talks movies.

Sophia Riley Kobacker

it's all about the story, possums...

Through the Shattered Lens

Where mainstream meets grindhouse, exploitation, otaku and gamers

The Darkest Art

A journey through dark art.

Chaplin-Keaton-Lloyd film locations (and more)

by John Bengtson "the great detective of silent film locations" New York Times

Silver Screenings

an irreverent blog of old movies

Like For Real Dough

For Those Who Wish To Be Entertained

off the leash

History, technology, books and baseball.

LEANNE COLE

Fine Art Photographer ~ Daring to be Different

Tripambitions

It contains the world best places and things.

Mademoiselle FANTASY

one person, one blog

Mary Miley's Roaring Twenties

A Unique Decade in American History

Cinematic

Read My Thoughts on Film, Television, and Music

I Found it at the Movies

My Life as a Movie Lover

Canadian Cinephile

"For me, cinema is a vice. I love it intimately." Fritz Lang

Dispatches from the Asylum

I believe in only one thing and that thing is human liberty ~ H.L. Mencken

Jacolette:

a gallery of Irish snapshot and vernacular photography.

lifesdailylessonsblog

Exploring life lessons though the Arts

Classic for a Reason

Reviews of Classic Films

Burrello Submarine's Movie Blog

cinema esoterica obscura

Motion Picture Blog

Indie Film Reviews & Essential Film Lists

First Night Design

Art, Design, Theatre, Literature, History, Food, Laughter ...

Paddy Healy's Blog

In defence of Education and the Public Services

shivashishspeaks

ALL U WANNA KNOW

Riding the High Country

Reviews and ramblings

Movies Tavern

Horror e Exploitation, B-Movies & Trash, Rarità e Capolavori. Insomma, ciò che mi piace.

CravenWild

The life and times of a filmmaker: fashion, beauty, books and life.

spearfruit

....................................it's my life

vinnieh

Movie reviews and anything else that comes to mind

renxkyoko's space

Just another WordPress.com site

TheMarckoguy

"TheMarckoguy" is the alternate name for Markus. Markus is a human who reviews stuff.

Tippity Tappin Away in the Coffee Shop

I write a lot, and I wanted a place to share my flash fiction stories.

/ EXPERIENCE OF THINKING / EXPÉRIENCE DE PENSÉE / ESPERIENZA DI PENSIERO /

The world is everything that is the case. --- Ludwig Wittgenstein.

Erin's Movie corner

Frankly my dear, I don't give a damn

Come Here To Me!

Dublin Life & Culture.

Ghost Dog

Notes From the Underground with Pictures

Karmic Reaction Blog

:Arts, Culture, History, Music, Politics, Science, Writing:

Product of Half-glass.com

An average guy capable of discussing TV & film on a higher level but would rather do it from the couch.

Kate Bowyers Media Adventure

“Love recognizes no barriers. It jumps hurdles, leaps fences, penetrates walls to arrive at its destination full of hope.” — Maya Angelou

%d bloggers like this: